Q,R, system
Not what you're looking for?
Explain what should happen to the order quantity in an order point (Q,R) system, and the time between orders in a periodic review (P,T) system, as the fixed cost per order (S) increases relative to other cost parameters. Explain the effect this will have on average inventory levels.
Purchase this Solution
Solution Summary
The solution explains what will happen the (Q,R) system, and explains the effect on the average inventory levels.
Solution Preview
Effects of Increase in Ordering Costs on Order Quantity,
Time between Orders, and Average Inventory Level
Costs relevant to a certain level of inventory include ordering cost and carrying costs. Ordering cost is the cost incurred every time an order is placed or simply, the cost per order transaction. Costs related to ordering may be transportation, and other costs related to the processing of orders. Carrying cost is expressed in a per unit basis. It is the cost of holding or carrying a unit of inventory as a result of maintenance, warehouse, insurance, obsolescence, and others that ...
Education
- Bachelor of Science in Business Administration, University of the Philippines
- Master in Business Administration, Saint Mary's University
- Doctor of Philosophy in Education, University of the Philippines
- Doctor in Business Adminstration (IP), Polytechnic University of the Philippines
Recent Feedback
- "Excellent information thanks for the input"
- "Thank you"
- "Very thorough and informative. Thank you."
- "Good response. Very detailed"
- "This solution is excellent. Thank you"
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Motivation
This tests some key elements of major motivation theories.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations