Flashcards in Mikes Bikes WOB TEST 2 Deck (6):
What inventory concept includes functions and objectives?
Safety stock equations
Safety Stock = (Prior period sales / 52 weeks) x number of weeks of desired safety stock
What is the amount to order equation?
Amount to order = expected demand + safety stock - inventory on hand
What happens if you forecast inaccurately
Loss of sales
If you forecast 1000 bikes but demanded 2000 what would happen?
Lost sale of 1000 bikes