Sink Points
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Retail Outlets, Customers/ Users
Virtual Inventories
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Stockouts are filled from other stocking locations in the distribution
network
Customers assigned to a primary stocking location
Backup locations are generally determined by zoning rules
Expectation is that lower system-wide inventories can be achieved while
, maintaining or improving stock availability levels
Total distribution costs should be lower to support the cross filling of
customer demand
Transportation Cost
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R*D
Out-of-stock Costs include
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lost sales cost & backorder cost
Frieght Consolidation
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1) combine small shipments into larger ones
2) a problem of balancing cost savings vs customer service reduction
3) an important area for cost reduction in many firms
4) Based on the rate shipment size relationships for hire carriers
Accessorial or Special Charges
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fuel surcharge, stop-off priviledge
Rate Profiles by Volume
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more volume, lower rate
X Items
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makes profit, zero inventory
Inventory Position
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IP = (On-hand Inventory) - (Backlop) + (Outstanding Orders)
When demand at Distribution Center is independent and identically distributed...
Give this one a try later!
Give this one a try later!
Retail Outlets, Customers/ Users
Virtual Inventories
Give this one a try later!
Stockouts are filled from other stocking locations in the distribution
network
Customers assigned to a primary stocking location
Backup locations are generally determined by zoning rules
Expectation is that lower system-wide inventories can be achieved while
, maintaining or improving stock availability levels
Total distribution costs should be lower to support the cross filling of
customer demand
Transportation Cost
Give this one a try later!
R*D
Out-of-stock Costs include
Give this one a try later!
lost sales cost & backorder cost
Frieght Consolidation
Give this one a try later!
1) combine small shipments into larger ones
2) a problem of balancing cost savings vs customer service reduction
3) an important area for cost reduction in many firms
4) Based on the rate shipment size relationships for hire carriers
Accessorial or Special Charges
, Give this one a try later!
fuel surcharge, stop-off priviledge
Rate Profiles by Volume
Give this one a try later!
more volume, lower rate
X Items
Give this one a try later!
makes profit, zero inventory
Inventory Position
Give this one a try later!
IP = (On-hand Inventory) - (Backlop) + (Outstanding Orders)
When demand at Distribution Center is independent and identically distributed...
Give this one a try later!
