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intro to logistics Cheat Sheet (DRAFT) by

Transport-Lecture 4: Introduction to logistics

This is a draft cheat sheet. It is a work in progress and is not finished yet.

Economic order quantities

Determines the volume and frequency of orders that minimise the logistic costs within a specific time window.
๐‘„: Order Volume
๐‘†: Ordering Costs
๐ถ: Unit Cost
๐ท: Demand
โ„Ž: Holding Cost
๐ผ: Handling Cost
Total Ordering Costs = # of orders * costs per order
O = DS/Q
Total Holding costs = Average holding costs * order volume
๐ป= ๐‘„โ„Ž/2, where โ„Ž=๐ผ๐ถ
Total costs of ordering and holding cargo that satisfies demand ๐ท is:
๐‘‡=๐‘‚+๐ป
= DS/Q + Qh/2
Determines the volume and frequency of orders that minimise the logistic costs within a specific time window.
1. Optimal order ๐‘„* is achieved when Holding and Order costs are balanced.
2.Inve­ntory costs have a small impact due to ๐‘„*.
3.Cycle time = Q*/D, and number of orders per year = D/Q*
Q* = sqrt(2­SD/h)

SD/Q* = hQ*/2

Economic order quantities

Determines the volume and frequency of orders that minimise the logistic costs within a specific time window.
๐‘„: Order Volume ๐‘†: Ordering Costs ๐ถ: Unit Cost โ„Ž: Holding Cost ๐ผ: Handling Cost ๐ท: Demand