April 2016
Intermediate to advanced
430 pages
16h 33m
English
Content preview from RFID and Auto-ID in Planning and Logistics
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198 RFID and Auto-ID in Planning and Logistics
These conditional probability tree calculations are demonstrated in Figure 16.2. The conditional
probability tree was collapsed in order to nd an expected cost for customer service, $48,417:
E Y( ) ( . )($ ) ( . )( . )( . )($ , ) ( . )( . )( .2 8 75 9 2 118 9 25 9 2= + +0 0 0 0 0 0 0 0 0 0 ))($ , )
( . )( . )( . )($ , ) ( . )( . )( . )($
295 225
75 1 2 885 675 25 1 2+ +0 0 0 0 0 0 11 18 9
48 417
, , )
$ ,
0 00
=
(16.5)
Many assumptions were made with the inclusion of the customer service cost. However, it is
a risk that the company takes every time they ship a product. Therefore, this cost needed to ...
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