terminologies eme

size of the order which minimizes the total annual cost of ordering and carrying inventory

• Carrying cost

• Stockout

• Reorder point

• EOQ/Economic Order Quantity

incurred each time an order is placed

• Reorder point

• Ordering Cost

• Safety stock

• Carrying cost

Inventory level at which it is appropriate to replenish stock

• Reorder point

• EOQ/Economic Order Quantity

• Carrying cost

• Safety stock

concerned with selecting optimal routes between sources and destinations

• Balanced condition

• Unused squares

• Safety stock

• Transportation problem

• all of the above

systematic and logical procedure for setting up the initial solution to a transportation problem

• Stone squares

• Rim requirements

• Northwest corner rule

• Stepping stone method

Time required for the inventory to arrive after an order is placed

• Lead time

• Safety stock

• Reorder point

• Carrying Cost

row containing the opportunity costs of bringing one unit of a variable into the solution of a linear programming problem

• Replaced row

• Cj-Zj row

• Zj row

• Cj row

capacity constraints at sources and destinations in a transportation problem

• Stepping stone method

• Stone squares

• Rim requirements

• Balanced condition

The net change in cost occasioned by a one-unit change in the quantity shipped

• Unused squares

• Improvement Index

• Safety stock

• Balanced condition

demand equals supply

• Rim requirements

• Unused squares

• Safety stock

• Balanced condition