TAILIEUCHUNG - Lecture Principle of inventory and material management - Lecture 24
Lecture 24 - Order Quantities (Continued). The contents of this chapter include all of the following: Probabilistic models and safety stock, probabilistic demand, other probabilistic models, fixed period system, EOQ consequences, period order quantity model. | Lecture 24 Order Quantities (Continued) Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, ., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, ., CFPIM, North Carolina State University, Lloyd M. Clive, ., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, .: McGraw-Hill/Irwin. Operations Management, 11/E, Jay Heizer, Texas Lutheran University, Barry Render, Graduate School of Business, Rollins College, Prentice Hall Objectives Probabilistic Models and Safety Stock Probabilistic Demand Other probabilistic models Fixed period system EOQ consequences Period order quantity model Probabilistic Models and Safety Stock Used when demand is not constant or certain Use safety stock to achieve a desired service level and avoid stockouts ROP = d x L + ss Annual stockout costs = the sum of the units short x the probability x the stockout cost/unit x the number of orders per
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