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Table of Contents
Preface; Contents; About the Author; 1 Introduction; 1.1 Parameters; 1.1.1 Demand; 1.1.2 Procurement Cost; 1.1.3 Cycle Time; 1.1.4 Ordering Cost; 1.1.5 Inventory Carrying Cost; 1.1.6 Inventory Stock; 1.1.7 Stock Out Level; 1.1.8 Stock Out Cost; 1.2 Economic Lot Size; 1.3 Interaction of Inventory Parameters; 1.3.1 Basic Case Without Stock Outs; 1.3.2 With Stock Out; 2 Demand; 2.1 Increase in Demand; 2.2 Decrease in Demand; 2.3 Stock Out Situation; 2.3.1 Demand Increase; 2.3.2 Demand Decrease; 2.4 Demand Estimation for Variety of Products; 2.4.1 FMCG; 2.4.2 Pharmaceutical; 2.4.3 Agricultural
2.4.4 Hi-Tech3 Ordering Cost; 3.1 Estimation of Ordering Cost; 3.2 Ordering Cost Decrease; 3.3 Ordering Cost Increase; 3.4 Inclusion of Shortages; 3.4.1 Reduction in Ordering Cost; 3.4.2 Increase in Ordering Cost; 3.5 Interaction of Ordering Cost and Demand; 3.6 Ordering Cost Estimation for Variety of Products; 3.6.1 FMCG; 3.6.2 Pharmaceutical; 3.6.3 Food Products; 3.6.4 Hi-Tech; 4 Inventory Carrying Cost; 4.1 Carrying Cost Estimation; 4.2 Increase in Holding Cost; 4.3 Decrease in Holding Cost; 4.4 Backordering Scenario; 4.4.1 Carrying Cost Increase; 4.4.2 Carrying Cost Reduction
4.5 Interaction of Holding Cost with Other Parameters4.6 Response with a Combination of Parameters; 4.6.1 Without Stock Outs; 4.6.2 With Stock Outs; 4.7 Carrying Cost Estimation for Various Products; 4.7.1 FMCG; 4.7.2 Pharmaceutical; 4.7.3 Food/Agricultural Products; 4.7.4 Hi-Tech; 5 Procurement Cost; 5.1 Procurement Cost Reduction; 5.2 Procurement Cost Increase; 5.3 Stock Out Inclusion; 5.3.1 Decreased Purchase Cost; 5.3.2 Increased Purchase Cost; 5.4 Interaction of Procurement Cost with Other Parameters; 6 Cycle Time; 6.1 Significance of Cycle Time; 6.2 Cycle Time Variation
6.2.1 Reduced Cycle Time6.2.2 Increased Cycle Time; 6.3 Backlogging Situation; 6.3.1 Upward Variation in Cycle Time; 6.3.2 Downward Variation in Cycle Time; 6.4 Interaction of Parameters Without Stock Out; 6.4.1 Decreased Cycle Time; 6.4.2 Higher Cycle Time; 6.5 Interaction of Parameters with Stock Out; 6.5.1 Increased Cycle Time; 6.5.2 Lower Cycle Time; 7 Stock Out; 7.1 Stock Out Cost Estimation; 7.2 Shortage Cost Increase; 7.3 Shortage Cost Decrease; 7.4 Interaction with the Parameters; 7.4.1 Interaction with the Demand; 7.4.2 Interaction with the Ordering Cost
7.4.3 Interaction with the Holding Cost7.5 Variation of K Triggered by Change in Other Parameters; 7.5.1 Demand Variation; 7.5.2 Ordering Cost Variation; 7.5.3 Holding Cost Increase; 7.6 Response with a Combination of Parameters; 7.6.1 With an Aim of Similar Lot Size; 7.6.1.1 Change Triggered by Ordering Cost; 7.6.1.2 Change Triggered by Carrying Cost; 7.6.1.3 Change Triggered by Stock Out Cost; 7.6.1.4 Change Triggered by Demand; 7.6.2 With an Aim of Similar Total Cost; 7.6.2.1 Variation Triggered by Ordering Cost; 7.6.2.2 Variation Triggered by Carrying Cost
2.4.4 Hi-Tech3 Ordering Cost; 3.1 Estimation of Ordering Cost; 3.2 Ordering Cost Decrease; 3.3 Ordering Cost Increase; 3.4 Inclusion of Shortages; 3.4.1 Reduction in Ordering Cost; 3.4.2 Increase in Ordering Cost; 3.5 Interaction of Ordering Cost and Demand; 3.6 Ordering Cost Estimation for Variety of Products; 3.6.1 FMCG; 3.6.2 Pharmaceutical; 3.6.3 Food Products; 3.6.4 Hi-Tech; 4 Inventory Carrying Cost; 4.1 Carrying Cost Estimation; 4.2 Increase in Holding Cost; 4.3 Decrease in Holding Cost; 4.4 Backordering Scenario; 4.4.1 Carrying Cost Increase; 4.4.2 Carrying Cost Reduction
4.5 Interaction of Holding Cost with Other Parameters4.6 Response with a Combination of Parameters; 4.6.1 Without Stock Outs; 4.6.2 With Stock Outs; 4.7 Carrying Cost Estimation for Various Products; 4.7.1 FMCG; 4.7.2 Pharmaceutical; 4.7.3 Food/Agricultural Products; 4.7.4 Hi-Tech; 5 Procurement Cost; 5.1 Procurement Cost Reduction; 5.2 Procurement Cost Increase; 5.3 Stock Out Inclusion; 5.3.1 Decreased Purchase Cost; 5.3.2 Increased Purchase Cost; 5.4 Interaction of Procurement Cost with Other Parameters; 6 Cycle Time; 6.1 Significance of Cycle Time; 6.2 Cycle Time Variation
6.2.1 Reduced Cycle Time6.2.2 Increased Cycle Time; 6.3 Backlogging Situation; 6.3.1 Upward Variation in Cycle Time; 6.3.2 Downward Variation in Cycle Time; 6.4 Interaction of Parameters Without Stock Out; 6.4.1 Decreased Cycle Time; 6.4.2 Higher Cycle Time; 6.5 Interaction of Parameters with Stock Out; 6.5.1 Increased Cycle Time; 6.5.2 Lower Cycle Time; 7 Stock Out; 7.1 Stock Out Cost Estimation; 7.2 Shortage Cost Increase; 7.3 Shortage Cost Decrease; 7.4 Interaction with the Parameters; 7.4.1 Interaction with the Demand; 7.4.2 Interaction with the Ordering Cost
7.4.3 Interaction with the Holding Cost7.5 Variation of K Triggered by Change in Other Parameters; 7.5.1 Demand Variation; 7.5.2 Ordering Cost Variation; 7.5.3 Holding Cost Increase; 7.6 Response with a Combination of Parameters; 7.6.1 With an Aim of Similar Lot Size; 7.6.1.1 Change Triggered by Ordering Cost; 7.6.1.2 Change Triggered by Carrying Cost; 7.6.1.3 Change Triggered by Stock Out Cost; 7.6.1.4 Change Triggered by Demand; 7.6.2 With an Aim of Similar Total Cost; 7.6.2.1 Variation Triggered by Ordering Cost; 7.6.2.2 Variation Triggered by Carrying Cost