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Safety stock is given by: SS = (safety factor)(std dev in LT demand) Reorder point is: ROP = Expected LT demand + SS Average Inventory is: SS + EOQ/2 Sales growth ...

techniques for managing inventory. abc analysis . inventory tracking. economic order . quantity (eoq) economic production lot . size (epls) back-order. quantity discounts

PNA/Level Surplus Point Line Point or Max/EOQ Order Point or Min EOQ Order Cycle Lead Time Safety Other Things We Can’t Forget PNA/Level Surplus Point Line Point or Max ...

EOQ example Demand, D = 12,000 computers per year. Holding cost, H = 100 per item per year. Fixed cost, S = $4,000/order. Find EOQ, Cycle Inventory, Optimal Reorder ...

Inventory Management Functions, forms, and drivers of inventory Inventory cost issues Tools: Economic order quantity (EOQ) Reorder point (ROP) and safety stock ...

... be made to ensure stock-out is avoided review time can be varied between products, according to lead times PERIODIC REVIEW Insert Figure 6.1 ECONOMIC ORDER QUANTITY (EOQ ...

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