Question
1. Why is it necessary to take into consideration the variability of the review period and the lead time and not only of the lead
1. Why is it necessary to take into consideration the variability of the review period and the lead time and not only of the lead time like in EOQ?
2. Why it makes more sense to use the Fixed-Period model for items that represent a low cost of our operations and are not critical, and EOQ for items that represent a high percentage of costs and/or are critical?
3. Both for EOQ and Fixed-Period, do you understand the logic of how to go from the daily standard deviation to one that represents a longer? period of time (LD or LD+Review Period)?
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International Financial Markets And The Firm
Authors: Piet Sercu, Raman Uppal
1st Edition
1861523548, 978-1861523549
