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EOQ for constant Demand & LeadTime IP On-hand inventory IP Order received Order received Q Order received Order received Q OH OH IP Q OH R Order...

HI, for the excel part,  could you further explain how you get the figure out?  (Target Inventory, Standard Deviation) and stuff?

thought the forumula shall be base on the ppt attached about Periodic Review system, EQM , safety stock and such. 

12 – 1 EOQ for constant Demand & LeadTime EOQ for constant Demand & LeadTime Time Time On-hand inventory On-hand inventory R TBO TBO L TBO TBO L TBO TBO L Order Order received received Order Order received received Q OH OH Order Order placed placed IP IP Order Order received received Q OH OH Order Order placed placed IP IP Order Order received received Order Order placed placed IP IP Q OH OH
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12 – 2 Impact of lead time and uncertainty in Impact of lead time and uncertainty in demand demand Lead time has NO impact if the demand is deterministic and at a constant rate. Uncertainty in the demand creates the need for safety stock Lead time under uncertain demand requires even a larger safety stock!
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