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Square root law of inventory management
Square root law of inventory management






square root law of inventory management

Not adversely affect product availabilityġ2-28Copyright ©2013 Pearson Education, Inc. As desired product availability goes up theġ2-27Copyright ©2013 Pearson Education, Inc.publishing as Prentice Hall.ġ2-26Copyright ©2013 Pearson Education, Inc. Use GOALSEEK to find safety inventory ss = 67 boxesġ2-25Copyright ©2013 Pearson Education, Inc.Expected shortage per replenishment cycle isġ2-23Copyright ©2013 Pearson Education, Inc.publishing as Prentice Hall.ġ2-22Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall.ġ2-21Copyright ©2013 Pearson Education, Inc. Probability(demand during lead time ≤ DL + ss) = CSLġ2-20Copyright ©2013 Pearson Education, Inc. Standard deviation of demand during lead time = σL publishing as Prentice Hall.ġ2-19Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall.Īverage demand during lead time, DL = 5,000 publishing as Prentice Hall.ġ2-17Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall.ġ2-16Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall.ĬSL = F(ROP,DL,sL) = NORMDIST(ROP,DL,sL,1)ġ2-15Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall.ĬSL = F(ROP, DL, sL) = NORMDIST(ROP, DL, sL, 1)ġ2-14Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall.Īverage inventory = cycle inventory + safety inventoryĪverage flow time = average inventory/throughputġ2-13Copyright ©2013 Pearson Education, Inc. Standard deviation of weekly demand, sD = 500Īverage lead time for replenishment, L = 2 weeks publishing as Prentice Hall.ġ2-11Copyright ©2013 Pearson Education, Inc. – Order is placed to raise the inventory level toġ2-10Copyright ©2013 Pearson Education, Inc. – Inventory status is checked at regular periodic Inventory declines to the reorder point (ROP) – Order for a lot size Q is placed when the – Fraction of replenishment cycles that end withġ2-9Copyright ©2013 Pearson Education, Inc. – Fraction of orders filled from available – Fraction of product demand satisfied from publishing as Prentice Hall.ġ2-8Copyright ©2013 Pearson Education, Inc. Lead time (L) is the gap between when an order isġ2-7Copyright ©2013 Pearson Education, Inc. SD = Standard deviation of demand (forecast error) – The desired level of product availability – The uncertainty of both demand and supply publishing as Prentice Hall.ġ2-6Copyright ©2013 Pearson Education, Inc. Product availability while reducing safetyġ2-5Copyright ©2013 Pearson Education, Inc. How much safety inventory is needed for the What is the appropriate level of productĢ. – Raising the level of safety inventory increasesġ2-4Copyright ©2013 Pearson Education, Inc. Utilize managerial levers available toġ2-3Copyright ©2013 Pearson Education, Inc. Identify factors that influence the requiredģ. Understand the role of safety inventory inĢ. publishing as Prentice Hall.ġ2-2Copyright ©2013 Pearson Education, Inc.

square root law of inventory management

publishing as Prentice Hall.Ĭopyright ©2013 Pearson Education, Inc. publishing as Prentice Hall.Copyright ©2013 Pearson Education, Inc. Chopra and Meindl Supply Chain Management, 5eĬopyright ©2013 Pearson Education, Inc.








Square root law of inventory management