where we have separated the annualized costs into ordering cost, OC, typically a function only of the order quantity Q; holding cost, HC, a function of Q by virtue of cycle stock, and of reorder point R by virtue of safety stock; and transportation
cost, TC, which, by its stated form earlier, we imply to be a function of Q, a relationship we establish more clearly both next and later in the chapter. Note that for TL shipments, the freight charge F
where we have separated the annualized costs into ordering cost, OC, typically a function only of the order quantity Q; holding cost, HC, a function of Q by virtue of cycle stock, and of reorder point R by virtue of safety stock; and transportationcost, TC, which, by its stated form earlier, we imply to be a function of Q, a relationship we establish more clearly both next and later in the chapter. Note that for TL shipments, the freight charge F
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