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{1}}  Abstract
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{1}}  Trough all the paper we assume that we have two series of pairs: O=(o\char95{}\{\char92{}textrm\{i\}\},d\char95{}\{i\})\char95{}\{i=0\}\char94{}\{n\} (orders) and S=(q\{i\},d\{i\})\char95{}\{i=0\}\char94{}\{n\} (stock movements) each pair up to n-\/1 is composed of a quantity and a date and represents a log in our inventory archive. the last pair has 0 for quantity by convention and the date is the last day for the time interval under consideration. 
 For simplicity we assume that we have only one article in stock, so if we have the following logs for the period 1-\/10 January: 

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{1}}  then we have the following series: O=\char92{}\{(0,1-\/\char92{}textrm\{jan\}),(100,3-\/\char92{}textrm\{jan\}),(-\/100,6-\/\char92{}textrm\{jan\}),(0,10-\/jan)\char92{}\} and S=\char92{}\{(32,1-\/\char92{}textrm\{jan\}),(-\/20,4-\/\char92{}textrm\{jan\}),(100,6-\/\char92{}textrm\{jan\}),(-\/15,6-\/\char92{}textrm\{jan\}),(0,10-\/jan)\char92{}\} we also denote with t the time interval.
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{1}}    The Quantity in stock is denoted by Q and is given by: Q=\char92{}sum \char95{}\{i=0\}\char94{}\{n\}q\char95{}\{i\} . 
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{1.25\p@}\def\saConditional%
{1}}    The sum of all the logs gives the amount that is in stock at the end of the period. This is usually the first information that a user wants to know.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{43}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.1.3. \Node%
{\def\Element%
{44}\def\ProcessingMode%
{title-sosofo-mode}}Example\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{44}}\endNode{}\Node%
{\def\Element%
{45}}\Par%
{\def\fSize%
{9\p@}\def\LineSpacing%
{11.7\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{58\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{10\p@}\def\EndIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}\Node%
{\def\Element%
{46}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    Q=32-\/20+100-\/15+0=97=

   \endPar{}\endNode{}\endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{47}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.2. \Node%
{\def\Element%
{48}\def\ProcessingMode%
{title-sosofo-mode}}Total sales\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{48}}\endNode{}\Node%
{\def\Element%
{49}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.2.1. \Node%
{\def\Element%
{50}\def\ProcessingMode%
{title-sosofo-mode}}Definition\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{50}}\endNode{}\Node%
{\def\Element%
{51}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    The Total sales is denoted by TS and is given by: TS=\char92{}sum \char95{}\{i=0\}\char94{}\{n\}IsSale(q\char95{}\{i\})\char92{}qquad \char92{}textrm\{where\}\char92{}qquad IsSale(q\char95{}\{i\})=\char92{}left\char92{}\{ \char92{}begin\{array\}\{lcl\}
-\/q\char95{}\{i\} \& \char92{}textrm\{if\} \& q\char95{}\{i\}<\/0\char92{}\char92{}
0 \& \char92{}textrm\{if\} \& q\char95{}\{i\}\char92{}geq 0
\char92{}end\{array\}\char92{}right. 
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{52}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.2.2. \Node%
{\def\Element%
{53}\def\ProcessingMode%
{title-sosofo-mode}}Rationale\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{53}}\endNode{}\Node%
{\def\Element%
{54}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    We sum only the negative(sales) amounts changing the sign. this is also an useful information on itself, moreover, dividing it by the total time we have the average daily sale that will be used later for more sophisticated calculations.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{55}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.2.3. \Node%
{\def\Element%
{56}\def\ProcessingMode%
{title-sosofo-mode}}Example\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{56}}\endNode{}\Node%
{\def\Element%
{57}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    TS=0+20+0+15+0=35	
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{58}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.3. \Node%
{\def\Element%
{59}\def\ProcessingMode%
{title-sosofo-mode}}Average stock quantity\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{59}}\endNode{}\Node%
{\def\Element%
{60}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.3.1. \Node%
{\def\Element%
{61}\def\ProcessingMode%
{title-sosofo-mode}}Definition\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{61}}\endNode{}\Node%
{\def\Element%
{62}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    The Average stock quantity is denoted by \char92{}overline\{S\} and is given by: \char92{}overline\{S\}=\char92{}frac\{\char92{}sum \char95{}\{i=0\}\char94{}\{n-\/1\}\char92{}left[ \char92{}left( \char92{}sum \char95{}\{k=0\}\char94{}\{i\}q\char95{}\{k\}\char92{}right) (d\char95{}\{i+1\}-\/d\char95{}\{i\})\char92{}right] \}\{t\} 
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{63}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.3.2. \Node%
{\def\Element%
{64}\def\ProcessingMode%
{title-sosofo-mode}}Rationale\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{64}}\endNode{}\Node%
{\def\Element%
{65}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    For each period of time that the stock amount was unchanged we multiply that period by the corresponding amount adding it to the grand total, at least we divide by the total period. this is an indicator of how much items (in average) we have in stock. If it is too low we are at risk to running out of stock, if too high we maintain a stock greater than we need, and this reflects in increased costs.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{66}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.3.3. \Node%
{\def\Element%
{67}\def\ProcessingMode%
{title-sosofo-mode}}Example\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{67}}\endNode{}\Node%
{\def\Element%
{68}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    \Node%
{\def\Element%
{69}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Node%
{\def\Element%
{70}}\Table%
{\def\DisplayAlignment%
{start}\def\TableWidth%
{full}}\TablePart%
{}\insertTableColumn%
{\def\Width%
{0\p@}\def\WidthFactor%
{0}}\insertTableColumn%
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{1}\def\Width%
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{0}}\insertTableColumn%
{\def\ColumnIndex%
{2}\def\Width%
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{0}}\insertTableColumn%
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{3}\def\Width%
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{0}}>\/
>\/
>\/
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\TeXTable%
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{2\p@}\def\StartIndentFactor%
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{2\p@}\def\EndIndentFactor%
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{2\p@}\def\StartIndentFactor%
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{1}}    A naive approach can lead to a complexity of O(n\char94{}\{2\}) due to the two nested summatories in the formula, but storing the partial sum in a variable can reduce it to O(n):
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{1}}2.3.5. \Node%
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{title-sosofo-mode}}An alternate way to calculate it.\endNode{}\endPar{}\endSeq{}\Node%
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{1}}    It can be demonstrated that:
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{1}}    this will require a simpler algorithm: 
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{medium}\def\Quadding%
{center}}d\char95{}\{n\}-\/d\char95{}\{i\}\endPar{}\endTableCell{}%
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{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
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{medium}\def\Quadding%
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\endTableRow{}%
\Hline%
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{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}0\endPar{}\endTableCell{}%
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{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
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{0}\def\EndIndent%
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{0}\def\ColumnIndex%
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{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
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{\def\CellRowAlignment%
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{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
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{0}\def\EndIndent%
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{0}\def\ColumnIndex%
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{\def\fFamName{Times-New-Roman}\def\fWeight%
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{\def\CellRowAlignment%
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{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
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{0}\def\EndIndent%
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{medium}\def\Quadding%
{center}}288\endPar{}\endTableCell{}%
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\Hline%
\TableRow%
{}\TableCell%
{\def\CellRowAlignment%
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{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}1\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{1}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}-\/20\endPar{}\endTableCell{}%
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{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{2}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}7\endPar{}\endTableCell{}%
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{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{3}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}-\/140\endPar{}\endTableCell{}%
\endTableRow{}%
\Hline%
\TableRow%
{}\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}2\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{1}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}100\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{2}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}4\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{3}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}400\endPar{}\endTableCell{}%
\endTableRow{}%
\Hline%
\TableRow%
{}\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}3\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{1}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}-\/15\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{2}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}4\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{3}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}-\/60\endPar{}\endTableCell{}%
\endTableRow{}%
\Hline%
\TableRow%
{}\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}4\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{1}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}0\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{2}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}0\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{3}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}0\endPar{}\endTableCell{}%
\endTableRow{}%
\Hline%
\TableRow%
{}\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}Total\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{1}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}-\/\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{2}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}-\/\endPar{}\endTableCell{}%
&\TableCell%
{\def\CellRowAlignment%
{start}\def\CellBeforeRowMargin%
{3\p@}\def\CellAfterRowMargin%
{3\p@}\def\CellBeforeColumnMargin%
{3\p@}\def\CellAfterColumnMargin%
{3\p@}\def\StartIndent%
{2\p@}\def\StartIndentFactor%
{0}\def\EndIndent%
{2\p@}\def\EndIndentFactor%
{0}\def\ColumnIndex%
{3}}\Par%
{\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\Quadding%
{center}}488\endPar{}\endTableCell{}%
\endTableRow{}\endNode{}\endNode{}%
\TablePartFooter%
{}\endTablePartFooter{}\Hline%
\endTeXTable{}%
\endTablePart{}\endNode{}\endNode{}\endNode{}\endNode{}%
\endTable{}%
\endNode{}\endDisplayGroup{}\endNode{}\endPar{}\endNode{}\Node%
{\def\Element%
{176}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    \char92{}overline\{S\}=\char92{}frac\{488\}\{9\}=54.\char92{}overline\{2\}
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{177}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.4. \Node%
{\def\Element%
{178}\def\ProcessingMode%
{title-sosofo-mode}}Average supply time\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{178}}\endNode{}\Node%
{\def\Element%
{179}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.4.1. \Node%
{\def\Element%
{180}\def\ProcessingMode%
{title-sosofo-mode}}Definition\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{180}}\endNode{}\Node%
{\def\Element%
{181}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    The Average supply time also called Average lead time is the average number of days occurring between the order issue and the receiving, is denoted by \char92{}overline\{L\}
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{\def\Element%
{182}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.4.2. \Node%
{\def\Element%
{183}\def\ProcessingMode%
{title-sosofo-mode}}Rationale\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{183}}\endNode{}\Node%
{\def\Element%
{184}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    There is no standard way to calculate it, due to the following factors:
   \endPar{}\endNode{}\Node%
{\def\Element%
{185}}\Seq%
{\def\ColorRed%
{255}\def\ColorGreen%
{0}\def\ColorBlue%
{0}}    a) The amount received does not necessarily correspond to the amount ordered (i.e. ordered 100 and received 98 or 102).
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{\def\Element%
{186}}\Seq%
{\def\ColorRed%
{255}\def\ColorGreen%
{0}\def\ColorBlue%
{0}}    b) Different quantities can be received in different days.
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{\def\Element%
{187}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    The best way to estimate it is the judgment of the purchasing responsible.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{188}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.4.3. \Node%
{\def\Element%
{189}\def\ProcessingMode%
{title-sosofo-mode}}Example\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{189}}\endNode{}\Node%
{\def\Element%
{190}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    In our case we received exactly the amount ordered (100 items on 3Th January) 3 days later (6Th January) so we can put \char92{}overline\{L\}=3. Suppose that in the paste we also ordered 100 item but that we received 30 items after 2 day and the remaining 70 after 4 days. what would be the average supply time?
   \endPar{}\endNode{}\Node%
{\def\Element%
{191}}\Seq%
{\def\ColorRed%
{255}\def\ColorGreen%
{0}\def\ColorBlue%
{0}}    a) \char92{}frac\{4+2\}\{2\}=3,
   \endSeq{}\endNode{}\Node%
{\def\Element%
{192}}\Seq%
{\def\ColorRed%
{255}\def\ColorGreen%
{0}\def\ColorBlue%
{0}}    b) \char92{}frac\{4+2\}\{4\}=1.5, or
   \endSeq{}\endNode{}\Node%
{\def\Element%
{193}}\Seq%
{\def\ColorRed%
{255}\def\ColorGreen%
{0}\def\ColorBlue%
{0}}    c) \char92{}frac\{2x30+4x70\}\{100\}=3.4 ?
   \endSeq{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{194}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.5. \Node%
{\def\Element%
{195}\def\ProcessingMode%
{title-sosofo-mode}}Average daily sale\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{195}}\endNode{}\Node%
{\def\Element%
{196}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.5.1. \Node%
{\def\Element%
{197}\def\ProcessingMode%
{title-sosofo-mode}}Definition\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{197}}\endNode{}\Node%
{\def\Element%
{198}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    The Average daily sale is denoted by \char92{}overline\{D\} and is given by: \char92{}overline\{D\}=\char92{}frac\{TS\}\{t\}
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{199}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.5.2. \Node%
{\def\Element%
{200}\def\ProcessingMode%
{title-sosofo-mode}}Rationale\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{200}}\endNode{}\Node%
{\def\Element%
{201}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    Interesting by itself, in that it indicate the average amount sold daily, is needed for the calculation of reorder point (see below).
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{202}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.5.3. \Node%
{\def\Element%
{203}\def\ProcessingMode%
{title-sosofo-mode}}Example\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{203}}\endNode{}\Node%
{\def\Element%
{204}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    \char92{}overline\{D\}=\char92{}frac\{TS\}\{t\}=\char92{}frac\{35\}\{9\}=3.\char92{}overline\{8\}
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{205}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.6. \Node%
{\def\Element%
{206}\def\ProcessingMode%
{title-sosofo-mode}}Rotation Index\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{206}}\endNode{}\Node%
{\def\Element%
{207}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.6.1. \Node%
{\def\Element%
{208}\def\ProcessingMode%
{title-sosofo-mode}}Definition\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{208}}\endNode{}\Node%
{\def\Element%
{209}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    The Rotation Index is denoted by I\char95{}\{rot\} and is given by: I\char95{}\{rot\}=\char92{}frac\{TS\}\{\char92{}overline\{S\}\}
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{210}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.6.2. \Node%
{\def\Element%
{211}\def\ProcessingMode%
{title-sosofo-mode}}Rationale\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{211}}\endNode{}\Node%
{\def\Element%
{212}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    This very important indicator counts how many cycles of the supply chain are effectuated in the period. The more it is high, the better is the performance. Its inverse indicates how many periods are needed, in average, to complete a cycle.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{213}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}2.6.3. \Node%
{\def\Element%
{214}\def\ProcessingMode%
{title-sosofo-mode}}Example\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{214}}\endNode{}\Node%
{\def\Element%
{215}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    I\char95{}\{rot\}=\char92{}frac\{35\}\{54.\char92{}overline\{2\}\}=0.645 thus in the period we completed, in average, little more than an half of the supply chain cycle. The inverse \char92{}frac\{1\}\{0.645\}=1.55 tell us that we need, in average, 1.55x9=13.95 days to complete a supply chain cycle.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{216}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{17.28\p@}\def\LineSpacing%
{22.464\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{2}\def\sbNom%
{12.96\p@}\def\sbMin%
{12.96\p@}\def\sbMax%
{12.96\p@}\def\sbConditional%
{1}\def\saNom%
{3.456\p@}\def\saMin%
{3.456\p@}\def\saMax%
{3.456\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3. \Node%
{\def\Element%
{217}\def\ProcessingMode%
{title-sosofo-mode}}Reorder Point and Safety Stock\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{217}}\endNode{}\Node%
{\def\Element%
{218}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.1. \Node%
{\def\Element%
{219}\def\ProcessingMode%
{title-sosofo-mode}}Theoretical order point\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{219}}\endNode{}\Node%
{\def\Element%
{220}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.1.1. \Node%
{\def\Element%
{221}\def\ProcessingMode%
{title-sosofo-mode}}Definition\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{221}}\endNode{}\Node%
{\def\Element%
{222}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    The Theoretical order point is denoted by P\char95{}\{theortical\} and is given by: P\char95{}\{theortical\}=\char92{}overline\{D\}\char92{}quad \char92{}overline\{L\}
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{223}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.1.2. \Node%
{\def\Element%
{224}\def\ProcessingMode%
{title-sosofo-mode}}Rationale\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{224}}\endNode{}\Node%
{\def\Element%
{225}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    Supposing that the demand and the supply time are constant, this indicates the level of stock at which we must issue an order, because, in the time we will receive the items ordered, we will sell all the remaining stock, i.e. if we sell two items each day and we will receive new items ten days after the order was issued, we must order before the stock level falls under twenty items, for not running short of items. On the other hand the more this 'before' is shorter, the best we achieve in performance, since we reduce the dead stock. The ideal is that the new items arrive exactly when the old ones are all sold, no before no later.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{226}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.1.3. \Node%
{\def\Element%
{227}\def\ProcessingMode%
{title-sosofo-mode}}Example\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{227}}\endNode{}\Node%
{\def\Element%
{228}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    P\char95{}\{theorethical\}=3.\char92{}overline\{8\}\char92{}, 3=11.\char92{}overline\{6\}so, theoretically, we must order when the stock level falls under twelve.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{229}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.2. \Node%
{\def\Element%
{230}\def\ProcessingMode%
{title-sosofo-mode}}Safety Stock\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{230}}\endNode{}\Node%
{\def\Element%
{231}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.2.1. \Node%
{\def\Element%
{232}\def\ProcessingMode%
{title-sosofo-mode}}Definition\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{232}}\endNode{}\Node%
{\def\Element%
{233}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    The Safety Stock is denoted by S\char95{}\{safety\} The classical definition is: S\char95{}\{safety\}=\char92{}frac\{P\char95{}\{theoretical\}\}\{2\} a more general general and flexible (although requires human judgment and intervention) is: S\char95{}\{safety\}=\char92{}overline\{D\}xK where K is a constant denoting the number of supply days we hold in reserve and is defined by the inventory/sales responsible. Note that when K=\char92{}frac\{\char92{}overline\{L\}\}\{2\} then (\Node%
{\def\Element%
{234}}\endNode{}) is equivalent to (\Node%
{\def\Element%
{235}}\endNode{})
    \Node%
{\def\Element%
{236}}\Seq%
{\def\fSize%
{6\p@}\def\PositionPointShift%
{4\p@}\def\PositionPointShiftFactor%
{0}}3\endSeq{}\endNode{}
    
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{238}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.2.2. \Node%
{\def\Element%
{239}\def\ProcessingMode%
{title-sosofo-mode}}Rationale\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{239}}\endNode{}\Node%
{\def\Element%
{240}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    In the definition of the theoretical order point we made two assumptions: that both the demand and the supply time are constant. In the real word this is almost never true, so we take a margin of safety to not run short of stock before the replenishment, but we want this margin to be as little as possible to minimize dead stock and improve performance.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{241}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.2.3. \Node%
{\def\Element%
{242}\def\ProcessingMode%
{title-sosofo-mode}}Example\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{242}}\endNode{}\Node%
{\def\Element%
{243}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    S\char95{}\{safety\}=\char92{}frac\{11.\char92{}overline\{6\}\}\{2\}=5.8\char92{}overline\{3\} for the classical definition, if we use the second definition with, say, K=2 we have S\char95{}\{safety=11.\char92{}overline\{6\}\char92{}, 2=23.\char92{}overline\{3\}\}
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{244}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.3. \Node%
{\def\Element%
{245}\def\ProcessingMode%
{title-sosofo-mode}}Order point\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{245}}\endNode{}\Node%
{\def\Element%
{246}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.3.1. \Node%
{\def\Element%
{247}\def\ProcessingMode%
{title-sosofo-mode}}Definition\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{247}}\endNode{}\Node%
{\def\Element%
{248}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    The Order point is denoted by P and is given by: 
   \endPar{}\endNode{}\Node%
{\def\Element%
{249}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    P=P\char95{}\{theoretical\}+S\char95{}\{safety\}
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{250}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.3.2. \Node%
{\def\Element%
{251}\def\ProcessingMode%
{title-sosofo-mode}}Rationale\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{251}}\endNode{}\Node%
{\def\Element%
{252}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    Self evident: we add our margin of safety to the optimal, but risky, theoretical order point.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{253}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.3.3. \Node%
{\def\Element%
{254}\def\ProcessingMode%
{title-sosofo-mode}}Example\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{254}}\endNode{}\Node%
{\def\Element%
{255}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    In the first case: 17.4\char92{}overline\{9\}. In the other one: 34.\char92{}overline\{9\}
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{256}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.4. \Node%
{\def\Element%
{257}\def\ProcessingMode%
{title-sosofo-mode}}Economic Order Quantity (EOQ)\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{257}}\endNode{}\Node%
{\def\Element%
{258}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}   The Economic Order Quantity is the answer to the following question: \Entity{ldquo}how many items do i have to buy in order to minimize the accessory costs related to buy and keeping?\Entity{rdquo}
  \endPar{}\endNode{}\Node%
{\def\Element%
{259}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}   Before we present the formula, we have to define two variables that we need to carry out the calculation. 
  \endPar{}\endNode{}\Node%
{\def\Element%
{260}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}   The cost of placing an order is the sum of all the costs related to processing orders (purchasing dept.,supplies,phone bills ...) divided by the number of orders (better: the number of item lines in orders) in the time period.
  \endPar{}\endNode{}\Node%
{\def\Element%
{261}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}   The Inventory cost per item is the sum of all inventory related costs (warehouse dept. warehouse rent, equipment ...) divided by the average stock \char92{}overline\{S\}.
  \endPar{}\endNode{}\Node%
{\def\Element%
{262}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.4.1. \Node%
{\def\Element%
{263}\def\ProcessingMode%
{title-sosofo-mode}}Definition\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{263}}\endNode{}\Node%
{\def\Element%
{264}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    Let C\char95{}\{order\} be the cost of placing an order, and C\char95{}\{item\}be the inventory cost per item for all the time period, then the Economic order quantity is defined by:
   \endPar{}\endNode{}\Node%
{\def\Element%
{265}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    EOQ=\char92{}sqrt\{\char92{}frac\{2\char92{}, TS\char92{}, C\char95{}\{order\}\}\{C\char95{}\{item\}\}\}
   \endPar{}\endNode{}\Node%
{\def\Element%
{266}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    for the evaluation of C\char95{}\{order\} and C\char95{}\{item\} see section \Node%
{\def\Element%
{267}}\Link%
{\def\Label%
{COSTANALYSYS}}\endLink{}\endNode{}.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{268}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.4.2. \Node%
{\def\Element%
{269}\def\ProcessingMode%
{title-sosofo-mode}}Assumptions\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{269}}\endNode{}\Node%
{\def\Element%
{270}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    This formula is valid under the following assumptions:
   \endPar{}\endNode{}\Node%
{\def\Element%
{271}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\saNom%
{5\p@}\def\saMin%
{5\p@}\def\saMax%
{5\p@}\def\saConditional%
{1}}\Node%
{\def\Element%
{272}}\DisplayGroup%
{\def\StartIndent%
{66\p@}\def\StartIndentFactor%
{0}}\Par%
{\def\FirstLineStartIndent%
{-18\p@}\def\FirstLineStartIndentFactor%
{0}\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\fSize%
{10\p@}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}\Seq%
{}\LineField%
{\def\FieldWidth%
{18\p@}\def\FieldWidthFactor%
{0}\def\FieldAlign%
{end}}1. \endLineField{}\endSeq{}\Node%
{\def\Element%
{273}\def\ProcessingMode%
{listitem-content-mode}}\Seq%
{}    The demand rate is known and uniform.
    \endSeq{}\endNode{}\endPar{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{274}}\DisplayGroup%
{\def\StartIndent%
{66\p@}\def\StartIndentFactor%
{0}}\Par%
{\def\FirstLineStartIndent%
{-18\p@}\def\FirstLineStartIndentFactor%
{0}\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\fSize%
{10\p@}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}\Seq%
{}\LineField%
{\def\FieldWidth%
{18\p@}\def\FieldWidthFactor%
{0}\def\FieldAlign%
{end}}2. \endLineField{}\endSeq{}\Node%
{\def\Element%
{275}\def\ProcessingMode%
{listitem-content-mode}}\Seq%
{}    The price is the same for any quantity. 
    \endSeq{}\endNode{}\endPar{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{276}}\DisplayGroup%
{\def\StartIndent%
{66\p@}\def\StartIndentFactor%
{0}}\Par%
{\def\FirstLineStartIndent%
{-18\p@}\def\FirstLineStartIndentFactor%
{0}\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\fSize%
{10\p@}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}\Seq%
{}\LineField%
{\def\FieldWidth%
{18\p@}\def\FieldWidthFactor%
{0}\def\FieldAlign%
{end}}3. \endLineField{}\endSeq{}\Node%
{\def\Element%
{277}\def\ProcessingMode%
{listitem-content-mode}}\Seq%
{}    The total orders cost is a function of the number of orders. 
    \endSeq{}\endNode{}\endPar{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{278}}\DisplayGroup%
{\def\StartIndent%
{66\p@}\def\StartIndentFactor%
{0}}\Par%
{\def\FirstLineStartIndent%
{-18\p@}\def\FirstLineStartIndentFactor%
{0}\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\fSize%
{10\p@}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}\Seq%
{}\LineField%
{\def\FieldWidth%
{18\p@}\def\FieldWidthFactor%
{0}\def\FieldAlign%
{end}}4. \endLineField{}\endSeq{}\Node%
{\def\Element%
{279}\def\ProcessingMode%
{listitem-content-mode}}\Seq%
{}    The total inventory cost is a function of average stock
    \endSeq{}\endNode{}\endPar{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{280}}\DisplayGroup%
{\def\StartIndent%
{66\p@}\def\StartIndentFactor%
{0}}\Par%
{\def\FirstLineStartIndent%
{-18\p@}\def\FirstLineStartIndentFactor%
{0}\def\fFamName{Times-New-Roman}\def\fWeight%
{medium}\def\fSize%
{10\p@}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}\Seq%
{}\LineField%
{\def\FieldWidth%
{18\p@}\def\FieldWidthFactor%
{0}\def\FieldAlign%
{end}}5. \endLineField{}\endSeq{}\Node%
{\def\Element%
{281}\def\ProcessingMode%
{listitem-content-mode}}\Seq%
{}    Stock-\/outs are a rare event.
    \endSeq{}\endNode{}\endPar{}\endDisplayGroup{}\endNode{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{282}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.4.3. \Node%
{\def\Element%
{283}\def\ProcessingMode%
{title-sosofo-mode}}Rationale\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{283}}\endNode{}\Node%
{\def\Element%
{284}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    In one period of time we sell TS, if we want to avoid both dead stock and running short, we need also to buy TS items, but how? All in one time or in n orders each of \char92{}frac\{TS\}\{n\} items? Making the assumption that the price do not vary with the quantity (i.e. no quantity discounts) we can concentrate only on the accessory costs. Each order costs us C\char95{}\{order\}, on the other hand we sustain a cost for keeping the items in the inventory. suppose that Q is the quantity bought each time, let us calculate the total accessory cost for buying many times the same quantity Q in our period of time. Clearly we will issue \char92{}frac\{TS\}\{Q\}orders in the period, sustaining a cost of C\char95{}\{order\}\char92{}times \char92{}frac\{TS\}\{Q\}. On the other hand, assuming that the demand rate is constant, we will have an average stock of \char92{}frac\{Q\}\{2\} items, because...
   \endPar{}\endNode{}\Node%
{\def\Element%
{285}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    we can define the total cost function T(Q) as:
   \endPar{}\endNode{}\Node%
{\def\Element%
{286}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    T(Q)=C\char95{}\{order\}\char92{}times \char92{}frac\{TS\}\{Q\}+\char92{}frac\{Q\}\{2\}\char92{}times C\char95{}\{item\}
   \endPar{}\endNode{}\Node%
{\def\Element%
{287}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    we then find the minimum by the usual technique of finding the root of the derivative: 
   \endPar{}\endNode{}\Node%
{\def\Element%
{288}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    T'(Q)=-\/C\char95{}\{order\}\char92{}times \char92{}frac\{TS\}\{Q\char94{}\{2\}\}+\char92{}frac\{C\char95{}\{item\}\}\{2\}=0
   \endPar{}\endNode{}\Node%
{\def\Element%
{289}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    solving this equation for Q gives us our formula.
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{290}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.4.4. \Node%
{\def\Element%
{291}\def\ProcessingMode%
{title-sosofo-mode}}Example\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{291}}\endNode{}\Node%
{\def\Element%
{292}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    Assuming that C\char95{}\{order\} = \Entity{dollar}2 and C\char95{}\{item\}=\char92{}\$5, we have:
   \endPar{}\endNode{}\Node%
{\def\Element%
{293}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    EOQ=\char92{}sqrt\{\char92{}frac\{2\char92{}times 35\char92{}times 2\}\{5\}\}=\char92{}sqrt\{28\}=5.29 
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{294}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{12\p@}\def\LineSpacing%
{15.6\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{4}\def\sbNom%
{9\p@}\def\sbMin%
{9\p@}\def\sbMax%
{9\p@}\def\sbConditional%
{1}\def\saNom%
{2.4\p@}\def\saMin%
{2.4\p@}\def\saMax%
{2.4\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}3.4.5. \Node%
{\def\Element%
{295}\def\ProcessingMode%
{title-sosofo-mode}}Dealing with the assumptions\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{295}}\endNode{}\Node%
{\def\Element%
{296}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}    Assumptions 3 and 4 are necessary, but fortunately, quite often true. 
   \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{297}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{17.28\p@}\def\LineSpacing%
{22.464\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{2}\def\sbNom%
{12.96\p@}\def\sbMin%
{12.96\p@}\def\sbMax%
{12.96\p@}\def\sbConditional%
{1}\def\saNom%
{3.456\p@}\def\saMin%
{3.456\p@}\def\saMax%
{3.456\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}4. \Node%
{\def\Element%
{298}\def\ProcessingMode%
{title-sosofo-mode}}Evaluation of the inventory\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{298}}\endNode{}\Node%
{\def\Element%
{299}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}4.1. \Node%
{\def\Element%
{300}\def\ProcessingMode%
{title-sosofo-mode}}Effective cost method\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{300}}\endNode{}\Node%
{\def\Element%
{301}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}   TBD
  \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{302}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}4.2. \Node%
{\def\Element%
{303}\def\ProcessingMode%
{title-sosofo-mode}}Average cost method\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{303}}\endNode{}\Node%
{\def\Element%
{304}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}   TBD
  \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{305}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}4.3. \Node%
{\def\Element%
{306}\def\ProcessingMode%
{title-sosofo-mode}}LIFO method\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{306}}\endNode{}\Node%
{\def\Element%
{307}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}   TBD
  \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{308}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}4.4. \Node%
{\def\Element%
{309}\def\ProcessingMode%
{title-sosofo-mode}}FIFO method\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{309}}\endNode{}\Node%
{\def\Element%
{310}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}   TBD
  \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Label%
{COSTANALYSYS}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{17.28\p@}\def\LineSpacing%
{22.464\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{2}\def\sbNom%
{12.96\p@}\def\sbMin%
{12.96\p@}\def\sbMax%
{12.96\p@}\def\sbConditional%
{1}\def\saNom%
{3.456\p@}\def\saMin%
{3.456\p@}\def\saMax%
{3.456\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}5. \Node%
{\def\Element%
{312}\def\ProcessingMode%
{title-sosofo-mode}}Cost analysis\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{312}}\endNode{}\Node%
{\def\Element%
{313}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}5.1. \Node%
{\def\Element%
{314}\def\ProcessingMode%
{title-sosofo-mode}}Direct costing\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{314}}\endNode{}\Node%
{\def\Element%
{315}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}   TBD
  \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{316}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}5.2. \Node%
{\def\Element%
{317}\def\ProcessingMode%
{title-sosofo-mode}}Full costing\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{317}}\endNode{}\Node%
{\def\Element%
{318}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}   TBD
  \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{319}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{14.4\p@}\def\LineSpacing%
{18.72\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{3}\def\sbNom%
{10.8\p@}\def\sbMin%
{10.8\p@}\def\sbMax%
{10.8\p@}\def\sbConditional%
{1}\def\saNom%
{2.88\p@}\def\saMin%
{2.88\p@}\def\saMax%
{2.88\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}5.3. \Node%
{\def\Element%
{320}\def\ProcessingMode%
{title-sosofo-mode}}ABC Analysis\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{320}}\endNode{}\Node%
{\def\Element%
{321}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}   TBD
  \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Node%
{\def\Element%
{322}}\DisplayGroup%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{10\p@}\def\sbMin%
{10\p@}\def\sbMax%
{10\p@}\def\sbConditional%
{1}\def\saNom%
{10\p@}\def\saMin%
{10\p@}\def\saMax%
{10\p@}\def\saConditional%
{1}}\Seq%
{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fPosture%
{upright}\def\fSize%
{17.28\p@}\def\LineSpacing%
{22.464\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\HeadingLevel%
{2}\def\sbNom%
{12.96\p@}\def\sbMin%
{12.96\p@}\def\sbMax%
{12.96\p@}\def\sbConditional%
{1}\def\saNom%
{3.456\p@}\def\saMin%
{3.456\p@}\def\saMax%
{3.456\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}6. \Node%
{\def\Element%
{323}\def\ProcessingMode%
{title-sosofo-mode}}PUBLIC LICENSE\endNode{}\endPar{}\endSeq{}\Node%
{\def\Element%
{323}}\endNode{}\Node%
{\def\Element%
{324}}\Par%
{\def\FirstLineStartIndent%
{0\p@}\def\FirstLineStartIndentFactor%
{0}\def\Quadding%
{start}\def\Hyphenate%
{0}\def\Language%
{EN}\def\sbNom%
{20\p@}\def\sbMin%
{20\p@}\def\sbMax%
{20\p@}\def\sbConditional%
{1}\def\saNom%
{1.25\p@}\def\saMin%
{1.25\p@}\def\saMax%
{1.25\p@}\def\saConditional%
{1}}  TBD
 \endPar{}\endNode{}\endSeq{}\endDisplayGroup{}\endNode{}\Seq%
{}\Par%
{\def\fFamName{Arial}\def\fWeight%
{bold}\def\fSize%
{17.28\p@}\def\LineSpacing%
{22.464\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{0\p@}\def\StartIndentFactor%
{0}\def\Quadding%
{start}\def\sbNom%
{12.96\p@}\def\sbMin%
{12.96\p@}\def\sbMax%
{12.96\p@}\def\sbConditional%
{1}\def\saNom%
{3.456\p@}\def\saMin%
{3.456\p@}\def\saMax%
{3.456\p@}\def\saConditional%
{1}\def\KeepWithNext%
{1}}Notes\endPar{}\Node%
{\def\Element%
{111}\def\ProcessingMode%
{endnote-mode}}\Seq%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}}\Node%
{\def\Element%
{112}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{-16\p@}\def\FirstLineStartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}\LineField%
{\def\FieldWidth%
{16\p@}\def\FieldWidthFactor%
{0}}1. \endLineField{}PartialTotal = 0\endPar{}\endNode{}\Node%
{\def\Element%
{113}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\fSize%
{9\p@}\def\LineSpacing%
{11.7\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}Total = 0\endPar{}\endNode{}\Node%
{\def\Element%
{114}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\fSize%
{9\p@}\def\LineSpacing%
{11.7\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}For i=0 to n-\/1\endPar{}\endNode{}\Node%
{\def\Element%
{115}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\fSize%
{9\p@}\def\LineSpacing%
{11.7\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}PartialTotal += q\char95{}\{i\}\endPar{}\endNode{}\Node%
{\def\Element%
{116}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\fSize%
{9\p@}\def\LineSpacing%
{11.7\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}Total += PartialTotal * (d\char95{}\{i+1\}-\/d\char95{}\{i\})\endPar{}\endNode{}\Node%
{\def\Element%
{117}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\fSize%
{9\p@}\def\LineSpacing%
{11.7\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}EndFor\endPar{}\endNode{}\Node%
{\def\Element%
{118}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\fSize%
{9\p@}\def\LineSpacing%
{11.7\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}Result = Total/t\endPar{}\endNode{}\endSeq{}\endNode{}\Node%
{\def\Element%
{125}\def\ProcessingMode%
{endnote-mode}}\Seq%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}}\Node%
{\def\Element%
{126}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{-16\p@}\def\FirstLineStartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}\LineField%
{\def\FieldWidth%
{16\p@}\def\FieldWidthFactor%
{0}}2. \endLineField{}Total = 0\endPar{}\endNode{}\Node%
{\def\Element%
{127}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\fSize%
{9\p@}\def\LineSpacing%
{11.7\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}For i=0 to n\endPar{}\endNode{}\Node%
{\def\Element%
{128}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\fSize%
{9\p@}\def\LineSpacing%
{11.7\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}Total += q\char95{}\{i\}*(d\char95{}\{n\}-\/d\char95{}\{i\})\endPar{}\endNode{}\Node%
{\def\Element%
{129}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\fSize%
{9\p@}\def\LineSpacing%
{11.7\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}EndFor\endPar{}\endNode{}\Node%
{\def\Element%
{130}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\fSize%
{9\p@}\def\LineSpacing%
{11.7\p@}\def\LineSpacingFactor%
{0}\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}Result = Total/t\endPar{}\endNode{}\endSeq{}\endNode{}\Node%
{\def\Element%
{236}\def\ProcessingMode%
{endnote-mode}}\Seq%
{\def\StartIndent%
{48\p@}\def\StartIndentFactor%
{0}}\Node%
{\def\Element%
{237}\def\ProcessingMode%
{endnote-mode}}\Par%
{\def\StartIndent%
{64\p@}\def\StartIndentFactor%
{0}\def\FirstLineStartIndent%
{-16\p@}\def\FirstLineStartIndentFactor%
{0}\def\sbNom%
{5\p@}\def\sbMin%
{5\p@}\def\sbMax%
{5\p@}\def\sbConditional%
{1}}\LineField%
{\def\FieldWidth%
{16\p@}\def\FieldWidthFactor%
{0}}3. \endLineField{}Jan Schreibfeder has proposed an alternative definition, details can be found at \Entity{lt}www.effectiveinventory.com\Entity{bsol}article29.html\Entity{gt}.\endPar{}\endNode{}\endSeq{}\endNode{}\endSeq{}\endSpS{}\endSeq{}\endNode{}\endNode{}\endSeq{}\endFOT{}