International Journal of Physical Distribution & Logistics Management · 1994 · 66 citations · 1 references
ManagementOperations ManagementSupply Chain ManagementInventory ControlInventory ManagementLogistics ManagementCost MinimizationInventory Cost AnalysisInventory OptimizationInventory ReductionInventory TheoryLogistics Cost ManagementBatch Size AnalysisCost Trade-off AnalysisInventory AnalysisInventory Cost MinimizationInventory Cost ReductionInventory Models With Setup CostsSetup AnalysisSetup Cost
Logisticians are trained to identify trade‐offs and to devise compromising solutions which produce the lowest total costs. For example, the economic batch size is a compromise between setup costs and inventory carrying costs. Presents a problem‐analysis technique which helps the analyst to eliminate the problem so that no compromise is necessary. For example, instead of balancing inventory‐carrying costs and setup costs a solution which produces both lower setup costs and lower inventory‐carrying costs would be sought. Discusses a description of the techniques and several examples of its application to logistical problems.
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