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.
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.
Stop breadboarding and soldering – start making immediately! Adafruit’s Circuit Playground is jam-packed with LEDs, sensors, buttons, alligator clip pads and more. Build projects with Circuit Playground in a few minutes with the drag-and-drop MakeCode programming site, learn computer science using the CS Discoveries class on code.org, jump into CircuitPython to learn Python and hardware together, TinyGO, or even use the Arduino IDE. Circuit Playground Express is the newest and best Circuit Playground board, with support for CircuitPython, MakeCode, and Arduino. It has a powerful processor, 10 NeoPixels, mini speaker, InfraRed receive and transmit, two buttons, a switch, 14 alligator clip pads, and lots of sensors: capacitive touch, IR proximity, temperature, light, motion and sound. A whole wide world of electronics and coding is waiting for you, and it fits in the palm of your hand.
Have an amazing project to share? The Electronics Show and Tell is every Wednesday at 7:30pm ET! To join, head over to YouTube and check out the show’s live chat – we’ll post the link there.
