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7 Cards in this Set
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abc analysis
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a method for dividing on hand inventory into three classifications based on annual dollar volume around 70% 30% 15%
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EOQ or Optimum number of units per order.
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Q- number of units per order
Q*- optimum number of units per order d- annual demand in units for the inventory s- setup or ordering costs for each order h-holding costs or carrying costs per unit per year Q*= square root 2ds/h |
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expected number of orders
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n- demand/order quantity = d/Q*
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EXPECTED TIMES BETWEEN ORDERS
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t= number of working days per year/n
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total annual cost
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tc= d/q(s) + q/2(H)
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tc including purchase cost
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tc= d/q(s) + q/2(H) + pd
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reorder point or rop
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d * L
demand times order lead time/or number of working days it takes to deliver an order |
