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The Lean Sustainable Supply Chain: How to Create a Green Infrastructure with Lean Technologies
book

The Lean Sustainable Supply Chain: How to Create a Green Infrastructure with Lean Technologies

by Robert Palevich
January 2012
Intermediate to advanced
450 pages
9h 46m
English
Pearson
Content preview from The Lean Sustainable Supply Chain: How to Create a Green Infrastructure with Lean Technologies

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: 9780132837668Purchase book