Article ID: | iaor19951995 |
Country: | Netherlands |
Volume: | 38 |
Issue: | 2/3 |
Start Page Number: | 209 |
End Page Number: | 214 |
Publication Date: | Mar 1995 |
Journal: | International Journal of Production Economics |
Authors: | Meller Russel D. |
This paper examines the impact of multiple stocking points on system profitability by examining the increased profit needed to offset cost increases due to cycle inventory, safety stock, and order placement, It utilizes the economic order quantity model to analytically evaluate this relationship. A table based on the analytical result is presented at the end of the paper that quickly illustrates this relationship.