0

Multi-Echelon Serial Systems for Warehouse Inventory #math #mathematics

I can’t say I ever contemplated this before but the problem proposed by Andrew Andrade does happen in the world of inventory and supply chains – and here’s how he breaks it down:

Problem:
Jefferson Plumbing has know demand of 100 units annually, from loyal customers, of a specialty faucet that is ordered from a long time supplier. Alex received a letter from the supplier informing him that they would be increasing their minimum order quantity. The new minimum order quantity is triple what would normally be ordered. Due to their storefront’s city location, inventory holding costs for the faucet are expensive. Jefferson Plumbing Supplies has a warehouse with a cheaper annual holding cost, and Alex would like to determine the optimum costs previous to, and after the policy change.

multiechelon

Since the minimum order quantity is greater than yearly demand, therefore there will only be a maximum of 1 order within a year from the manufacturer. The initial assumption will be made that it is cheaper to store inventory at the warehouse and order parts when required. This assumption will be later verified by comparing the total cost to the base case.

Read more here.


Join 7,000+ makers on Adafruit’s Discord channels and be part of the community! http://adafru.it/discord

CircuitPython in 2018 – Python on Microcontrollers is here!

Have an amazing project to share? Join the SHOW-AND-TELL every Wednesday night at 7:30pm ET on Google+ Hangouts.

Join us every Wednesday night at 8pm ET for Ask an Engineer!

Follow Adafruit on Instagram for top secret new products, behinds the scenes and more https://www.instagram.com/adafruit/


Maker Business — The many, many manufacturing processes listed on Wikipedia

Wearables — A bevel illusion

Electronics — Blown transistor?

Biohacking — We are Wired to Exercise at a Moderate Pace

Python for Microcontrollers — Make It Move with Crickit!

Get the only spam-free daily newsletter about wearables, running a "maker business", electronic tips and more! Subscribe at AdafruitDaily.com !



No Comments

No comments yet.

Sorry, the comment form is closed at this time.