Cheatography

# intro to logistics Cheat Sheet (DRAFT) by bescam

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. π: Order Volume π: Ordering Costs πΆ: Unit Cost π·: Demand β: Holding Cost πΌ: Handling Cost Total Ordering Costs = # of orders * costs per order O = DS/Q Total Holding costs = Average holding costs * order volume π»= πβ/2, where β=πΌπΆ Total costs of ordering and holding cargo that satisfies demand π· is: π=π+π» = DS/Q + Qh/2 Determines the volume and frequency of orders that minimise the logistic costs within a specific time window. 1. Optimal order π* is achieved when Holding and Order costs are balanced. 2.Inve­ntory costs have a small impact due to π*. 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. π: Order Volume π: Ordering Costs πΆ: Unit Cost β: Holding Cost πΌ: Handling Cost π·: Demand