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Sustainability in Supply Chain Management (Collection)
book

Sustainability in Supply Chain Management (Collection)

by Peter A. Soyka, Robert Palevich, Steven M. Leon
October 2013
Intermediate to advanced content levelIntermediate to advanced
1104 pages
28h 27m
English
Pearson
Content preview from Sustainability in Supply Chain Management (Collection)

21. The New Sustainable EOQ Formula

The Economic Order Quantity (EOQ) is the amount needed to be ordered to minimize the variable cost. The EOQ formula looks only at the activity on the plant floor or in the distribution area. This chapter takes this formula to a new dimension. It expands the horizon of the EOQ formula to the entire supply chain and into the sustainable age of Green. The EOQ is the amount of inventory purchased that will balance the ordering and holding costs. Inventory is composed of the following parts:

• Raw materials and purchased parts from outside suppliers.

• Components and subassemblies that are awaiting final assembly.

• Work in process, which is all materials or components on the production floor in various stages of ...

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Publisher Resources

ISBN: 9780133480696