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Supply Chain Management Formulas   The Newsvendor Model: The…

Posted byAnonymous July 12, 2021December 9, 2023

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Supply Chаin Mаnаgement Fоrmulas   The Newsvendоr Mоdel: The Critical Fractal = Cu/(Cu + Co) Cu = p - c Co = c - s Converting a Critical Fractal to a order Quantity; Look up or calculate the z score. Multiply the z score times the standard deviation, then add the total to the mean of the distribution. Note if a z score is negative you will be adding a negative number to a positive number.    Economic Order Quantity and Reorder Point EOQ (Q*) = SQRT((2*d*s)/h), where d = demand, s = order costs, and h = holding costs ROP = (d(LT) * LT) + safety stock, where d(LT) = demand during the lead time, and LT = Lead Time Safety Stock = z * SD * SQRT(LT), where z = z score, SD = the standard deviation, and LT = Lead Time   Measures of Forecast Error:   Running Some of Forecast Error (RSFE) = SUM (At - Ft) Mean Forecast Error (Bias) (MFE) = RSFE/N Mean Absolute Deviation (MAD) = (SUM of the Absolute Value (At - Ft))/N Tracking Signal (TS) = RSFE/MAD   Measures of Forecast Error (Pasted Formulas)   

Supply Chаin Mаnаgement Fоrmulas   The Newsvendоr Mоdel: The Critical Fractal = Cu/(Cu + Co) Cu = p - c Co = c - s Converting a Critical Fractal to a order Quantity; Look up or calculate the z score. Multiply the z score times the standard deviation, then add the total to the mean of the distribution. Note if a z score is negative you will be adding a negative number to a positive number.    Economic Order Quantity and Reorder Point EOQ (Q*) = SQRT((2*d*s)/h), where d = demand, s = order costs, and h = holding costs ROP = (d(LT) * LT) + safety stock, where d(LT) = demand during the lead time, and LT = Lead Time Safety Stock = z * SD * SQRT(LT), where z = z score, SD = the standard deviation, and LT = Lead Time   Measures of Forecast Error:   Running Some of Forecast Error (RSFE) = SUM (At - Ft) Mean Forecast Error (Bias) (MFE) = RSFE/N Mean Absolute Deviation (MAD) = (SUM of the Absolute Value (At - Ft))/N Tracking Signal (TS) = RSFE/MAD   Measures of Forecast Error (Pasted Formulas)   

Supply Chаin Mаnаgement Fоrmulas   The Newsvendоr Mоdel: The Critical Fractal = Cu/(Cu + Co) Cu = p - c Co = c - s Converting a Critical Fractal to a order Quantity; Look up or calculate the z score. Multiply the z score times the standard deviation, then add the total to the mean of the distribution. Note if a z score is negative you will be adding a negative number to a positive number.    Economic Order Quantity and Reorder Point EOQ (Q*) = SQRT((2*d*s)/h), where d = demand, s = order costs, and h = holding costs ROP = (d(LT) * LT) + safety stock, where d(LT) = demand during the lead time, and LT = Lead Time Safety Stock = z * SD * SQRT(LT), where z = z score, SD = the standard deviation, and LT = Lead Time   Measures of Forecast Error:   Running Some of Forecast Error (RSFE) = SUM (At - Ft) Mean Forecast Error (Bias) (MFE) = RSFE/N Mean Absolute Deviation (MAD) = (SUM of the Absolute Value (At - Ft))/N Tracking Signal (TS) = RSFE/MAD   Measures of Forecast Error (Pasted Formulas)   

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