Supply Chain Management
Supply Chain Management
Supply Chain Management
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Model Two: Example*<br />
Consider the previous example, but with the following additional info:<br />
fixed cost of $4500 when an order is placed<br />
$250 product cost<br />
holding cost 18% of product<br />
Weekly holding cost:<br />
h = (.18 × 250) / 52 = 0.87<br />
Order quantity<br />
Q = 2∗4500∗44.6/0.87=679<br />
Order-up-to level:<br />
safety stock + Q = 85 + 679 = 765<br />
Unternehmensnetzwerke<br />
48