Shortage Cost in Industrial Engineering Formulas

The Shortage Cost is called the associate cost and is equal to the product’s contribution margin. And is denoted by C_s.

Industrial Engineering formulas that make use of Shortage Cost

fxEOQ Manufacturing Model with ShortageGo

fxMaximum Stock Out Manufacturing ModelGo

fxMaximum Inventory Purchase ModelGo

fxEOQ Purchase Model with ShortageGo

fxTotal Optimum Cost for Purchase ModelGo

What is the Shortage Cost?

The Shortage Cost is called the associate cost and is equal to the product’s contribution margin.

Can the Shortage Cost be negative?

{YesorNo}, the Shortage Cost, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

Let Others Know

✖

Copied!