Академический Документы
Профессиональный Документы
Культура Документы
refurbishment of stocks.
Proper defining of re-ordering point optimises operational
costs.
part
of
material
Every
materials/Spare
costs.
Delayed orders may result in break in production line
Definitions
Re-ordering Point :
The point in time when the order has to be placed for a given item keeping in mind purchasing, storing and backorder costs. Time taken from the point a purchase order is submitted to the arrival of products related to that order.
Definitions
Purchasing Order Cost (Ce) : Fixed purchasing order
Fixed cost per unit of time for each product for being stored in buffer. Fixed cost assigned each time a required product is not available in the buffer. An order that cannot be completed at the current time due to lack of supply.
Backorder :
Assumptions
The product comes in Q size of batches.
Logistic lead time is variable but known from historical
data.
Demand rate of client is variable but known from historical
data.
The buffer has infinite capacity.
Optimisation of Costs
The optimisation of re-ordering time will require the joint
orders (Cet).
The minimisation of the total storage cost for elements in the
buffer (Cst).
The minimisation of total backorder cost view unavailability of
Optimisation of Costs
The Costs to be minimised can be calculated as follows :
Cst = Nb x Cb Nb the no. of backorders
Cbt = Ne x Ce
Cst = Cs x (for i= 1 to m) Ts
Stock Movement
Max Stock Level
Re ordering Level RP
Batch Size Q
Stock Level
Problem Formulation
The net cost to be optimised is a sum of Cst , Cet and Cbt.
The net cost is function of the batch size (Q) and the Re-
Reference :
Optimisation of Reordering Points considering purchasing, storing and servicebreakdown costs by Aitor Goti and Miguel Oetega