COMM 225 Chapter Notes - Chapter 9 10 11 112 18: Sampling Distribution, Order Fulfillment, Dont
8 Dec 2016
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Fixed order quantity/reorder point model: determining the re-order point. Safety stock stock that is held in excess of expected demand due to variability of demand and/or lead time: rop = expected demand during a lead time + safety stock. Lead time service level probability that demand will not exceed inventory on hand during a lead time. Annual service level the percentage of annual demand filled (from stocks on hand), i. e, fill rate. Z safety factor; number of standard deviations above the expected demand. Reorder point under: constant demand and lead time , variable demand = + [ , variable lead time and demand . Single period model model for ordering perishables and other items with limited useful lives. = cs = revenue per unit purchase cost per unit. Excess cost difference between purchase cost and salvage value of an item left at the end of the period. = ce = purchase cost per unit salvage value per unit.
