MgtOp test
Terms
undefined, object
copy deck
-
What does this Variable stand for?
Q -
Order quantity
(# of pieces per order) -
What does this Variable stand for?
D -
Demand for the time period considered
(units/time period) -
What does this Variable stand for?
S -
Setup/order cost
($/Order) -
What does this Variable stand for?
H - Holding Cost
-
What does this Variable stand for?
I -
Interest Rate
(%/time period) -
What does this Variable stand for?
P -
Unit Cost
($/unit) -
What does this Variable stand for?
IC -
inventory cost
S+H
setup+holding costs -
What does this Variable stand for?
TC -
setup cost * # of orders
+ holding cost * average Q
+ P*D -
What does this Variable stand for?
EOQ - sqrt(2DS/H)
- what is independant demand
- from customer side, Smooth
- what is dependant demand
- derived demand, lumpy
- What is the objective of inventory systems
- to minimize total inventory cost and maintain satisfied service level
- what types of inventories are there?
-
Raw materials
in-process goods(WIP)
finished goods
supplies - what are the inventory related costs?
-
holding cost
shortage cost
order cost - Average Inventory Level=
- Q/2
- Annual Holding Cost=
- H*Q/2
- Number of Orders per year=
- D/Q
- Annual order Cost=
- S*D/Q
- Total Cost (TC)=
- P*D + S*D/Q + H*Q/2