Production, Capacity And Material Planning Page 43
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60Material Requirements Planning
Reorder point in (Q,R) policies:
i: total annual inventory costs (%)
c: unit costs
A: ordering costs
τ
:lead time
σ
: variance of demand in lead time
τ
β
β
z
given a fill rate
choose
such that:
(
)
∞
β
−
Q
1 (
)
∫
φ
=
−
=
L
z
y
z
y
dy
(
)
(
)
(
)
σ
τ
z
φ
N(0,1)
: density of
distribution; L(z): standard loss function
Production Management
142
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