ordering cost

Ordering Costs

Transaction costs associated with placing an order to buy or sell a security. Perhaps the most common ordering cost is the fee for the broker.
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ordering cost

the cost of placing an order for raw materials or components or machines, which includes management and clerical time, stationery, postage and other PURCHASING department costs. See STOCKHOLDING MODEL.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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References in periodicals archive ?
where TC is the total inventory cost, OC is the ordering cost, HC is holding cost, and PC is the purchase cost.
Population Based Metaheuristic Algorithm Approach for Analysis of Multi-Item Multi-Period Procurement Lot Sizing Problem
Where: A = fixed ordering cost, [D.sub.H] = total demand over considered time horizon, [h.sub.H] = holding cost per item unit over considered time horizon, [x.sub.L] = expected demand over lead-time, f(.) = probability density function of demand over lead-time.
Modeling Lead Time Demand in Continuous Review Inventory Systems
In this system, the total cost of inventory management consists of four components: fixed ordering cost, inventory holding cost at internal storage, inventory holding cost at external storage (called over-ordering cost in this paper), and shortage cost.
Mathematical Model of (R, Q) Inventory Policy under Limited Storage Space for Continuous and Periodic Review Policies with Backlog and Lost Sales
Each time the retailer has a need for replenishment, a major ordering cost, regardless of the number of the materials included, and a minor ordering cost, related to material, are incurred.
Optimizing the joint replenishment and channel coordination problem under supply chain environment using a simple and effective differential evolution algorithm
Generally, the imprecision may originate from two aspects in the JRD modeling: (1) the imprecise specification of objectives, for example, a decision-maker may have to face vague goals such as "this total cost should be around $20000"; (2) the imprecise specification of related parameters, an important task involved in the fuzzy JRD model is to predict parameters' values such as the holding cost and major ordering cost. However, due to the nonavailability of sufficient and precise input data, the precise predicted values cannot be obtained easily; just an "approximate" value may be ascertained, while fuzzy numbers can efficiently model the imprecise values.
Optimizing the joint replenishment and delivery scheduling problem under fuzzy environment using inverse weight fuzzy nonlinear programming method
In this paper, we consider a single-period inventory system with two suppliers and different ordering cost structures.
Research on optimal policy of single-period inventory management with two suppliers
Economic order quantity, or EOQ, refers to the level of inventory that minimizes inventory holding and ordering cost. Ordering costs are the physical activities required to process an order.
Making a case for should-cost estimates: suggestions for achieving cost targets: though not a simple matter, achieving cost targets can be successful by focusing on five areas suggested by Department of the Navy guidance
Additionally, fixed ordering cost is incurred for placing each order.
Analysis of economic order quantity under Ecommerce paradigm
Ordering cost is the cost of making requisition of raw material from the supplier.
Application of genetic algorithms in inventory management
At first glance, it may be expected that an increase in number of deliveries will raise ordering costs. However, the LFL lot sizing method allows bundling of purchase orders for the same supplier, resulting in a lower ordering cost despite an increase in delivery frequency.
Designing ordering and inventory management methodologies for purchased parts
In the classical EOQ model the total annual cost of an item ([TC.sub.E]) is the sum of the cost of delivered goods, inventory ordering cost, and carrying cost, or:
A comparative analysis of inventory costs of JIT and EOQ purchasing

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