Question: Beyond qualitative observations, the ( Q , R ) system offers some quantitative insight into the factors that affect the optimal stocking policy. ( Example
Beyond qualitative observations, the Q R system offers some quantitative insight into the factors that affect the optimal stocking policy. Example Increasing the average annual demand tends to increase or decrease the optimal order quantity Q For a given replenishment frequency, if customer service remains fixed at a sufficiently high level then the higher or lower the variability ie standard deviation of demand or replenishment lead time the more inventory we must carry.
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