SENSIBILITY ANALYSIS OF THE PLANNED AVAILABILITY PERIOD AND OF THE IMPACT OF THE COST FACTORS ON TOTAL COSTS

Abstract

The classical stockpile management approaches the optimization of the stock level from the side of expenses, meaning that the optimal stock level is represented by the stock derived from the lowest total costs. Among the costs of the stockpile management system, we differentiate three basic cost categories, such as the cost elements related to the procurement activity, the costs related to stock holding, and the costs related to stock shortage consequences. From the economic order quantity models we analyze the cost factors of the version with the planned stock shortage. During our analysis, we examine the movement of practical logistics experts within a short time horizon, e.g. the parameters modified during certain orders and the input factors that must be considered as given, and the impact of these factors modified to different extents and in different combination on the different cost factors and on the total cost.