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Published in:
2017 | OriginalPaper | Chapter
3. Ordering Cost
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Abstract
Estimation of ordering cost is explained in the present chapter. This is discussed concerning small/large retailer as well as warehouse/industry. Factors on which ordering cost may depend are narrated. Effects on output parameters such as lot size and cost are computed with reference to an ordering cost variation, i.e., its decrease/increase. In above issues, inclusion of shortages is separately handled. In the previous chapter, demand parameter is focused. After explaining the cost of ordering in detail, an interaction of ordering cost and demand is specifically mentioned.