Comments on "Economic Ordering Frequency for Two Items Jointly Replenished" by Frank T. Shu

Amarlal H. Kalro
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Amarlal H. Kalro: Indian Institute of Management, Ahmedabad, India

Management Science, 1972, vol. 18, issue 12, B732-B733

Abstract: In his paper (Management Science, Vol. 17, No. 6, pp. B406-B410) Shu describes a method for determining the replenishment frequencies of items jointly replenished. Essentially, the procedure develops "skipping rules" for an item, this being replenished every kth time that the others are replenished. A better procedure is to rank the items in decreasing order of demand/set-up cost ratio, then select the lowest ratio item as the skipped item.

Date: 1972
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