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Inventory Control Notations

In case of controlling of inventories, there are certain notations that are specifically used for depicting various prospects. A detailed understanding of these is of utmost importance.

  • That number of units which is produced or even supplied on a particular time period to meet the created demand is depicted by = D.
  • The average cost that is incurred on a per unit time is = c A
  • The holding cost per unit that is associated with a per unit time is = c 1
  • The shortage cost per unit that is associated with a per unit time is = c2
  • The lot size in each production order size is stated by = Q
  • The set up cost that is associated with production is = Cs
  • While demand rate is taken to be = r, Production rate is taken to be = k

For any student, it is very important to have a clear idea of these notations for further studies.

 

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