diff --git a/specialized/supply-chain-strategist.md b/specialized/supply-chain-strategist.md index cc3e544a..51eb455a 100644 --- a/specialized/supply-chain-strategist.md +++ b/specialized/supply-chain-strategist.md @@ -162,7 +162,9 @@ class InventoryManager: eoq = self.calculate_eoq() safety_stock = self.calculate_safety_stock() rop = self.calculate_reorder_point() - annual_orders = round(self.params.annual_demand / eoq) + # The steady-state EOQ model uses an annual order rate, which can be + # fractional. Rounding it changes the ordering-cost objective. + annual_orders = self.params.annual_demand / eoq total_cost = ( self.params.annual_demand * self.params.unit_price + # Procurement cost annual_orders * self.params.order_cost + # Ordering cost @@ -174,7 +176,7 @@ class InventoryManager: 'eoq': eoq, # Economic Order Quantity 'safety_stock': safety_stock, # Safety stock 'reorder_point': rop, # Reorder point - 'annual_orders': annual_orders, # Orders per year + 'annual_orders': annual_orders, # Average orders per year 'total_annual_cost': round(total_cost, 2), # Total annual cost 'avg_inventory': round(eoq / 2 + safety_stock), # Average inventory level 'inventory_turns': round(self.params.annual_demand / (eoq / 2 + safety_stock), 1) # Inventory turnover