{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

production_4(0)

# Between reorder point calculation when the lead time

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: en Reorder Point Calculation When the lead time is smaller than the cycle: When The order has to be ordered in advance of the end of a The cycle (lead time). In terms of on-hand inventory; cycle The reorder point R, is the product of the demand rate The and lead time. and R = λτ λτ 8 Example 4.1 Reorder Point Calculation When the lead time is larger than the cycle: When The lead time is larger than a single cycle. Form the ratio τ/T Consider only fractional remainder of the ratio. Multiply this fractional remainder by the cycle length. Multiply Multiply this result with demand rate to obtain the reorder point. reorder 9 Reorder Point Calculation for Lead Times Exceeding One Cycle Sensitivity Analysis Let G(Q) be the average annual holding and set-up cost Let up function given by G (Q) = K λ / Q + hQ / 2 and let G* be the optimal average annual cost. T...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online