Chapter 3

Question 1

How is “order cost” calculated?

Answer 1

(T / Q ) * k.
T = tons consumed
Q = Quantity
k = Cost per order

Question 2

Calculate the Carrying cost (or holding cost) that is invested into the inventory

Answer 2

(Q/2) * h
h= Each unit yearly cost
Delat med 2 eftersom det är kostnaden mellan perioder eller leveranser

Question 3

What is the final formula to calculate Q*?

Used to minimize cost in inventory

Answer 3

Q* = ROTEN UR: (2Tk) / h
E.g:
ROTEN UR: (2255 000 * 450) / 55) = 2,043 t
Q = “Economic order quantity”

Question 4

What is the “optimal order size”?

Answer 4

Where “order costs” and “carrying costs” are equal (or intersects in a graph), meaning:
(T/Q)k = (Q/2)h

Question 5

What is the “grant credit?” rule?

Answer 5

Grant credit if the expected gain from granting credit (i.e lending) is positive.
pPV(Rev-Cost) - (1-p)PV(Cost)
Med formeln kan man beräkna vad p (alltså sannolikheten) behöver vara för att det skall vara värt att låna ut pengar.