hw9 soln

# hw9 soln - T C Q S m a x = A D Q C D i C Q 1 D P S m a x 2...

This preview shows pages 1–2. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: T C ( Q , S m a x ) = A D Q + C D + i C [ Q ( 1- D P )- S m a x ] 2 2 Q (1- D P ) + W 1 S m a x 2 2 Q ( 1- D P ) + W S m a x D Q IE 383 Assignment 10 Due April 13, Monday BEFORE class Please note: 1. Please use 3 decimal points for all interstage calculation steps and 2 decimal points for final answers when necessary. 2. Please show your equations using the symbols we used in class, otherwise 10 points will be deducted. For example, A: ordering cost C: item cost i: interest rate D: demand rate P: production rate W1: variable shortage cost W: fixed shortage cost 3. It is highly recommended to use Excel to solve this assignment. Problem 1 VV26 Inc. is the distributor of a unique industrial plastic container. The estimated annual demand is 12,000 units, annual holding cost is \$5 per container and it costs \$1,000 to initiate a delivery. The company allows maximum shortage up to 100 units with penalty cost of \$5 per unit container and \$1 per unit year container. Assuming that delivery is non-instantaneous, where delivery rate is 2000 units per month, determine the optimal...
View Full Document

## This note was uploaded on 12/17/2009 for the course IE 383 taught by Professor Leyla,o during the Spring '08 term at Purdue.

### Page1 / 3

hw9 soln - T C Q S m a x = A D Q C D i C Q 1 D P S m a x 2...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online