Production, Capacity And Material Planning Page 45
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60Material Requirements Planning
σ
= z
⋅
Safety stock:
s
τ
σ
=
+
⋅
Reorder point:
R
D
z
τ
τ
A
D
2
Order quantity:
=
=
Q
EOQ
ic
Q
Average inventory:
=
+
I
s
(
) 1
2
=
I
n
(
)
average
inventory
for
n
stocking
points
1
2A
D
σ
=
+
I
z
(
) 1
τ
2
ic
Production Management
144
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