About this document
Key Inventory Model Decisions Explained by krisshawk is a document available to read on EtoBox.
The document discusses inventory (stock) models used to determine the optimal order quantity and reorder point. It covers deterministic models, like the economic order quantity (EOQ) model, which assumes constant demand. The EOQ model shows that total inventory costs are minimized when ordering a quantity of 2*√(Demand*Order Cost/Holding Cost). It also discusses how to calculate the reorder point based on demand and lead time. Price breaks, where the unit price decreases with larger orders, are also factore
- Author
- krisshawk
- Language
- EN