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Unformatted text preview: month until the next delivery, and donate the rest to the Humane Society. • In 4 months, Nature’s Peak is planning to change the recipe and packaging for this food. If you have any food left at that time, you can sell it to discount pet stores in the area for $6 per pound. (Until then, the company wants to maintain the product’s high-end image.) • How should you manage your inventory for the next 4 months?
1 Section 4.12 of Denardo describes a problem in which such inventory management issues are part of the decisions
Page 16 IOE 202: Operations Modeling, Fall 2009 Space Operational decisions in the pet food distributor’s problem Is an EOQ model appropriate for this problem?
We need a diﬀerent type of mathematical model! What decisions do you need to make for the coming 4 months? What performance measure would you use to compare diﬀerent decisions? What constraints (restrictions) must your decisions satisfy? What assumptions are being made?
Page 17 IOE 202...
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This note was uploaded on 03/17/2010 for the course IOE 202 taught by Professor Marinaepelman during the Fall '09 term at University of Michigan-Dearborn.
- Fall '09