Inventory

Chapter 3 Deterministic Single Stage Constant poverty Inventory Mangement 3.1 EOQ Extension Backorder solelyowed Assumptions: Same as EOQ. Shortage : wassail of ?/item/ unit time. Observe: 39 Cycle be for a cycle of length T Cycle cost per unit time T C(Q, D) = ?T C(Q,D) ?S KD Q : K + CQ + hS + ?(Q?S) 2D 2D 2 2 : KD + CD + hS + ?(Q?S) Q 2Q 2Q 2 2 + CD + hS 2 2Q + ?(Q?S)2 2Q = hS ? ?(Q?S) = 0 Q Q ?hS = ?Q ? ?S ?Q ?S = h+? S ? ? Q = h+? (service level : proportion of beseech met from stock) ? ? ? From EOQ, we get : Q = S? = 2KD h ? ? h+? ? 2KD h ? h+? What if ? ? ? ? What if ? = 0 ? 3.2 EOQ Extension Quantity Discounts All units can: Q < q : embody : K + C1 Q Q ? q : Cost : K + C2 Q with C2 ? C1 Incremental bank cut: Q < q : Cost : K + C1 Q Q ? q : Cost : K + C1 Q + C2 (Q ? q)+ with C2 ? C1 40 3.2.1 All units push away T C1 (Q) = T C2 (Q) = ? Qc i = KD Q KD Q + + h1 Q 2 h2 Q 2 + C1 D + C1 D ? 2KD hi ? ? if Qc > q order Qc 2 2 ? if Qc 2 ?q andQc 1 ? q order { Qc if T C1 (Qc ) < T C2 (q) 1 1 q otherwise 41 3.2.

2 Incremental discount { Cost : ? ? K + C1 Q if Q < q K + (C1 ? C2 )q + C2 Q = K ? + C2 Q if Q ? q Q1 = Q2 = 2KD h 2K ? D h and Q2 > Q1 because K ? = K + (C1 ? C2 )q ? K Method : 1. trade man the expressions derived for C(Q) in T C(Q) and determine the minimum protect of Q alike to each price interval. 2. Determine which minima atomic number 18 realizable. match the value of the costs at the realizable EOQ values and plunge the lowest. 3.3 3.3.1 t riplex Products Coordinating Orders Power ! of Two Policies Suppose that we are social club multiple items and would like to coordinate orders. Power-oftwo (PoT) policies exact reorder intervals to be PoT of base period. Again, recall : T C(Q) = KD + Q hQ 2 = K T + hT D 2 = f (T ) 42 Let g = hD 2 ? ? f (T ) = K + gT ? ?T ? we get : T = K g ?...If you expect to get a full essay, order it on our website: BestEssayCheap.com

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