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Demand for an item is 50 units a month. Unit cost is $25, re-order cost is $25, holding cost is 25% of value a year,
- Demand for an item is 50 units a month. Unit cost is $25, re-order cost is $25, holding cost is 25% of value a year, shortage cost for back-orders is 40% of value a year.
- How often the item is out of stock?
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To calculate how often the item is out of stock we can use the Economic Order Quantity EOQ ...
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Managerial Decision Modeling Business Analytics With Spreadsheet
Authors: Nagraj Balakrishnan, Barry Render, Ralph Stair, Charles Munson
4th Edition
1501515101, 978-1501515101
