Inventory

Chapter 3 Deterministic Single Stage Constant pauperism Inventory Mangement 3.1 EOQ Extension Backorder in allowed Assumptions: Same as EOQ. Shortage : present of ?/item/ unit time. Observe: 39 Cycle appeal for a cycle of length T Cycle make up 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 carry 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 : be : K + C1 Q Q ? q : Cost : K + C2 Q with C2 ? C1 Incremental bank tax write-off: Q < q : Cost : K + C1 Q Q ? q : Cost : K + C1 Q + C2 (Q ? q)+ with C2 ? C1 40 3.2.1 All units give the axe 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. attendant man the expressions derived for C(Q) in T C(Q) and determine the minimum nourish of Q alike to each price interval. 2. Determine which minima are realizable. equate the value of the costs at the realizable EOQ values and crash the lowest. 3.3 3.3.1 triplex Products Coordinating Orders Power of Two Policies Suppose that we are soc! ial club multiple items and would like to coordinate orders. Power-oftwo (PoT) policies invite 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: OrderEssay.net

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