Optimum Customer Service Level and Cost to Serve

IV

SD Fcst Err

(Back order cost is "per unit short". CSL = Line Fill)

HR

EOQ

Lead Time

How to use this spreadsheet

OQ

SD Lt Err

Enter the relevant values in the table at the top left side.

OC

Optimum

Use the Tab key to trigger recalculation

AD

C. Serv =

If an OQ is entered as 0, the EOQ will be used.

BO

(Basis of order lines)

NOTE: If EOQ is used, stock and order costs are the same

BO is cost per unit short

Total Cost