GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT Essay - 1

GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT - Essay ExampleTherefore, the total cost of the Model of necessity to be redefined.Carrying cost is constant the model assumes that carrying costs are constant however, this might vary depending on the quantity of register, economies of scale, increase in storage space, and undertake of new warehouse.Independent orders the increase of orders may increase the cost of saving by reducing the transportation and paperwork. This means that the original EOQ should be limited and demonstrable to deal with the change. In essence, this means that the optimal strategy is computing one productInstantaneous delivery the model assumes that the orders is delivered instantly however, this can be modified to include the safe stock. In other words, the model assumes that there was no delay in delivery of stock and the delivered stock is as demanded.The model is found on assumptions hence not accurate for instance, it assumes that there is a steady deman d of the product for immediate restocking. However, the model does not consider variables much(prenominal) as economic fluctuations, as well as, seasonability of some products. Moreover, it assumes that holding charges, ordering costs, and inventory units are constant. This is difficult hence needs a constant monitoring of the inventory levels. In simple terms, the model is limited by the assumptions since the formula does not consider other factors and different products in the same order. Moreover, the model is based on complex mathematical calculations that require an individual to have a good understanding of algebra. This model disadvantages the small entrepreneurs who lack knowledge in calculating such figures.Notably, level production strategy is concerned with producing a plan that helps in maintaining a steady rate of employment and production. Satisfying demand requires that production in a firm be increased and lowered to