Beruflich Dokumente
Kultur Dokumente
Operations Management
Spring 2003
Inventory Management
Chapter 12
Continued
EOQ Model
How Much to Order?
Annual Cost
rve
u
C
t
s
o
C
ve
l
r
a
u
t
To
tC
s
o
C
g
n
i
Hold
Optimal
Order Quantity (Q*)
Order Quantity
EOQ Model
When To Order
Inventory Level
Average
Inventory
(Q*/2)
Optimal
Order
Quantity
(Q*)
Reorder
Point
(ROP)
Lead Time
Time
Supply
Begins
Supply
Ends
Time
POQ continued
The
$20.
The holding cost is 25% of the item
cost.
What is the Order Quantity?
Setup Costs
Clean-up
costs
Re-tooling costs
Adjustment costs
These costs are primarily determined by
the labor time necessary to perform the
tasks.
POQ continued
POQ continued
EOQ Model
When To Order
Inventory Level
Average
Inventory
(Q*/2)
Optimal
Order
Quantity
(Q*)
Reorder
Point
(ROP)
Lead Time
Time
POQ continued
POQ continued
The