344 - Repenishment Strategy Flashcards
1
Q
Quantity Discounts
A
Price Reductions for large orders
2
Q
Types or Quantity Discounts
A
Constant carrying cost
Carrying cost as percentage of unit price
3
Q
Price Break
A
The minimum order quantity needed to obtain a discount.
4
Q
Ordering price affects:
A
Optimal order quantity
NOT Economic order quantity
5
Q
A items
A
Carry safety stock and inventory for demand during lead time
6
Q
B items
A
Carry a minimal safety stock and inventory for demand during lead time
7
Q
C items
A
At branch level will be consolidated into the RDC.
At RDC level they will be eliminated.
8
Q
D items
A
Will be liquidated
