Supply Chain Management
The management of the chain of supplies
Healthy supplieshealthy supply chain
Purchasing executives shoppers
High quality materials
Bones and muscles of the body supply chain
You are what you eat
You are who you negotiate with
Profit (pi) TR-TC (total revenue total cost) total value total cost
TR Price times demanded
Dpi/dQ= 0+(SDQ^-2)-(1/2 KC)=0
Q=sqrt(2SD/KC) plus or minus (EOQ)
EXTRA CREDIT ON FINAL
As the order quantity decreases, what happens to inventory holding cost?
It should decrease.
As the order quantity decreases, what happens to setup cost?
It should increase.
The Economic Order Quantity (EOQ) seeks to
Minimize the setup cost and holding
In a retail store, when does the lead time end?
When the inventory is stocked on the shelf
Lead time is best defined as:
The time between when an order is placed and when it is received and available for use
Lead time is the time between when
Which is a key reason that companies need to develop more agile capabilities?
Customer purchase patterns are changing.
Which type of flexibility refers to the ability to scale output up and down without significant
What is the special problem posed by the newsvendor model?
Given uncertain, variable demand, the seller is likely to stock too many or too few with only a
short time frame to sell the product at full cost.
Everything else held equal, a decrease in the