Common use of Further improvement Clause in Contracts

Further improvement. The Min-max To-Be situation has already a better performance, than the Min-Max As-Is situation, with respect to the EBO and the ability to adhere to the interface agreement. However the difference in fill rate is not large. Therefore we choose to optimize the turn- around stock and minimum levels again, only in this case the maximum number of expected backorders is aligned on 3 (the remaining parameter choices are the same; explained in section 6.6). In Appendix K.2 the values for the turn-around stock and minimum levels are given. The investment costs are in this case equal to €3,436,193.45. The investment costs for the As-Is situation were €9,119,108.38. This means a reduction of 62% in the investment costs.

Appears in 2 contracts

Sources: Master's Thesis, Master's Thesis