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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

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