supply chain exam 2 formulas

inventory turnover ratio

cost of goods sold/average inventory at cost =

reorder point ROP

D x LT x SS =

fixed time period formula

Q = R - IP
order quantity - target inventory level = inventory position

economic order quantity model EOQ

square root of (2 x order cost x annual demand volume)/(annual carrying % x unit cost)

return on assets

profit before tax/assets =

inventory turnover

cost of goods sold/average inventory =

total cost of ownership TCO

Quality + Service + Delivery + Price =

QSDP