Schedule Optimisation of ROP
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Beware of using EBQ calculations from textbooks!
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| The equation for calculating EBQ’s can be easily found in textbooks, but they are most probably trading off the cost of just cycle stock against the cost of changeovers. As the time between makes increases, or the size of a batch increases, the amount of safety stock required to buffer variability will go up too. This relationship is not linear to the increase in cycle stock and therefore both cycle and safety stock should be included in the EBQ calculation.
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