LSCM 360 - Exam 2 Formulas

LSCM 360 - Exam 2 Formulas - Normal Distribution 68% = 1...

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EOQ INFORMATION Q R A QVW TAC + = 2 1 ; VW RA Q 2 = Q R G eVW Q R A QVW TAC + + + = 2 1 ; VW G A R Q ) ( 2 + = Terms – R = annual rate of demand or requirement for period Q = quantity ordered or size of lot A = cost of placing order or setup costs V = value of 1 unit of inventory W = carrying cost per dollar value of inventory per year in percentage terms t = time in days TAC = total annual costs e = expected excess (units) g = expected shortage (units) k = stockout cost G = expected stockout cost per cycle
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Unformatted text preview: Normal Distribution 68% = 1 stdev; 95.44% = 2 stdev; 99.7% = 3 stdev ) ( LT X R X = 2 2 2 ) ( ) )( ( LT R LT R X σ + = X = mean demand during lead time = st dev of demand during lead time LT X = mean lead time length LT = st dev of lead time length R = mean daily demand R = st dev of daily demand Square Root Law ) )( ( 1 2 1 2 n n X X =...
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This note was uploaded on 04/02/2008 for the course LSCM 360 taught by Professor Martins during the Spring '08 term at Iowa State.

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