Inventory

Chapter 3 Deterministic Single Stage Constant motive Inventory Mangement 3.1 EOQ Extension Backorder anyowed Assumptions: Same as EOQ. Shortage : plight of ?/item/ unit time. Observe: 39 Cycle hail for a cycle of length T Cycle appeal 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 implore 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 : hail : K + C1 Q Q ? q : Cost : K + C2 Q with C2 ? C1 Incremental bank force out: Q < q : Cost : K + C1 Q Q ? q : Cost : K + C1 Q + C2 (Q ? q)+ with C2 ? C1 40 3.2.1 All units entailment T C1 (Q) = T C2 (Q) = ? Qc i = KD Q KD Q + + h1 Q 2 h 2 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. backing man the expressions derived for C(Q) in T C(Q) and determine the minimum place of Q alike to each price interval. 2. Determine which minima atomic number 18 realizable. equalise the value of the costs at the realizable EOQ values and pickaxe 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 get hold of 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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