Shortage cost

Shortage cost

Costs that fall with increases in the level of investment in current assets.
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But the NLS strategy surpasses TBAPR I when the transportation cost is more expensive than the shortage cost (see numbers 1-5, 2-5, 3-5, 4-5, 5-5, 6-5).
Total Cost: The total cost components consist of production cost, setup cost, holding cost, shortage cost, defective cost and cost of quality.
Ishii and Konno (1998) introduced a fuzzy newsboy model restricted to shortage cost that is given by an L-shape fuzzy number while the demand is still stochastic.
Shortage cost is the cost that occurs when customer demand cannot be fulfilled from the existing stock because of running out of raw material.
Therefore, the present value of shortage cost during the first replenishment cycle is
The different costs associated with the system are set-up costs, holding costs, deterioration cost and shortage cost.
Assume that unit cost (U), reorder cost (R) and holding cost (H) are all known exactly, while the shortage cost is so high that all demands must be met and no shortages are allowed.
5p/litre over the past two years and with oil prices remaining high and an ongoing skilled labour shortage cost pressures remain a serious concern.
Winners of the competition have demonstrated that it is possible to create the quality and volume of properties necessary to make a difference to the chronic housing shortage cost effectively.
In the first six months of the year, the shortage cost the group around pounds 3 million but that number would be significantly higher in the second half.
The decision illustrates the shortage cost in reference to the reserve margin.