... purchasing a product in a traditional system. TRC = AD / Q + Ivr + Dv Where: TRC = Total Relevant Cost A = Fixed Cost per Order D = Annual Demand I = Average Annual Inventory Q = Quantity Ordered per Order v = Cost of Each Unit r = Holding Cost per Dollar per Year In the case of cross docking the middle term in the equation which considers the holding cost will drop out or be negligible since ... predictable sales data, eventually resulting in minimal stock-outs of excess inventory. From these benefits Wal-Mart has managed to keep their prices low and obtain higher sales per retail squa...

• Word Count: 3525
• Approx Pages: 14
• Has Bibliography
• Grade Level: Undergraduate