Materials Management and Inventory Systems

analysis annual demand average inventory backorder cost components cost per outage cost per unit critical ratio day 2 demand day second day day third day demand 1 demand demand in units demand rate determine economic order quantity economic production quantity end items ending inventory errors EWMA EXAMPLE FIFO fixed order interval formula frequently holding cost inventory control inventory investment inventory models inventory problem inventory record lead time demand LIFO manufacturing material requirements planning materials management maximum inventory level moving average normal distribution number of units obtained optimal order cost order cycle order interval system order size system organization part-period perpetual inventory Poisson distribution purchase cost quantity discount random numbers reorder point safety stock schedule second day third simulation single order standard deviation standard normal standard normal table stockout cost stockout level fraction supplier Table techniques tion total annual cost unit cost units demanded