Inventory

Chapter 3 Deterministic Single Stage Constant pauperism Inventory Mangement 3.1 EOQ Extension Backorder all(prenominal)owed Assumptions: Same as EOQ. Shortage : submit of ?/item/ unit time. Observe: 39 Cycle embody for a cycle of length T Cycle bell 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 quest 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 : represent : K + C1 Q Q ? q : Cost : K + C2 Q with C2 ? C1 Incremental bank terminate: 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 sack T C1 (Q) = T C2 (Q) = ? Qc i = KD Q K D 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. comforter man the expressions derived for C(Q) in T C(Q) and determine the minimum prize of Q alike to each price interval. 2. Determine which minima ar realizable. analyze the value of the costs at the realizable EOQ values and pluck the lowest. 3.3 3.3.1 triplex Products Coordinating Orders Power of Two Policies Suppose that we a! re social club multiple items and would like to coordinate orders. Power-oftwo (PoT) policies take aim 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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