asif rashid
26-05-10, 02:19 PM
Hi
Can enyone explain which calculation is correct for Holding cost with buffer stock
(A) Is it
=Annual cost of holdin one unit*[(consumption during lead time/2)+Buffer stock)
or
(B) =Annual cost of holdin one unit*(Average EOQ + Buffer stock)
Can enyone explain which calculation is correct for Holding cost with buffer stock
(A) Is it
=Annual cost of holdin one unit*[(consumption during lead time/2)+Buffer stock)
or
(B) =Annual cost of holdin one unit*(Average EOQ + Buffer stock)