ABSTRACT

This chapter addresses what looks like a simple economic order quantity analysis of a particular input component for a manufacturing process. It provides a useful basis for developing aspects of tactical clarity which need to be understood to achieve strategic clarity in all decision-making areas for all commercial organisations. TLC seems to have had no basis for getting beyond a very simple optimal order size and safety stock approach, intuitively sized by those directly involved, until Nicola arrived. A minimum level of expected cost without any direct concern for the level of associated cost risk was the objective pursued by Nicola on behalf of TLC in terms of her formal Economic Order Quantity models. TLC seems to have had no basis for getting beyond a very simple optimal order size and safety stock approach, intuitively sized by those directly involved, until Nicola arrived.