THE IMPACT OF MULTIPLE STOCKING POINTS ON SYSTEM PROFITABILITY

Authors
MELLER RD
Citation
Rd. Meller, THE IMPACT OF MULTIPLE STOCKING POINTS ON SYSTEM PROFITABILITY, International journal of production economics, 38(2-3), 1995, pp. 209-214
Citations number
NO
Categorie Soggetti
Engineering
Journal title
International journal of production economics → ACNP
ISSN journal
09255273
Volume
38
Issue
2-3
Year of publication
1995
Pages
209 - 214
Database
ISI
SICI code
0925-5273(1995)38:2-3<209:TIOMSP>2.0.ZU;2-T
Abstract
In this paper we examine the impact of multiple stocking points on sys tem profitability by examining the increased profit needed to offset c ost increases due to cycle inventory, safety stock, and order placemen t. We utilize the economic order quantity model to analytically evalua te this relationship. A table based on the analytical result is presen ted at the end of the paper that quickly illustrates this relationship .