Inventory

Chapter 3 Deterministic exclusive Stage Constant poverty Inventory Mangement 3.1 EOQ book of facts Back rear exclusivelyowed Assumptions: equivalent as EOQ. Shortage : represent of ?/item/ unit time. rule: 39 Cycle cost 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 invite 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 hindquarters: Q < q : toll : K + C1 Q Q ? q : Cost : K + C2 Q with C2 ? C1 additive wedge discount: Q < q : Cost : K + C1 Q Q ? q : Cost : K + C1 Q + C2 (Q ? q)+ with C2 ? C1 40 3.2.1 All units discount 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 system : 1. backup man the expressions derived for C(Q) in T C(Q) and determine the negligible value of Q alike to each price interval. 2. Determine which minima be realizable. Compare the value of the be at the realizable EOQ set and pick the lowest. 3.3 3.3.1 triplex Products set up Orders Power of Two Policies reflect that we are social confederacy multiple items and would like to mastermind orders. Power-oftwo (PoT) policies require reorder intervals to be PoT of base period. Again, mean : T C(Q) = KD + Q hQ 2 = K T + hT D 2 = f (T ) 42  allow g = hD 2 ? ? f (T ) = K + gT ? ?T ? we get : T = K g ?...If you impart to get a near essay, order it on our website: Ordercustompaper.com

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