19-Daellenbach CH6EX5b - 771 6 2045 5087 461 $147,520...

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CH6EX5(b) Second model for LOD Decision variables: Stock replenishment size Q Special production run cutoff level L INPUT DATA Total Demand 7132 drums/year Product value $400.00 /drum Production setup cost $320.00 /production run Product handling cost $1.10 /drum via storage $0.45 /drum by special production runs Investment holding cost $0.18 /dollar invested per year COMPUTATION OF T(L,Q) (base period: one year) cutoff Demand Demand met Number of Setup cost Total Corresp. Corresp. Total Cust. Cumula- point from by special special special handling EOQ relevant relevant order Number tive stock prod.runs prod.runs prod.runs cost EOQ cost cost size number 1 0 7132 1266 $405,120 $3,209 0.0 $0 $408,329 0 0 0 2 134 6998 1132 $362,240 $3,297 34.5 $2,485 $368,021 1 134 134 3 846 6286 776 $248,320 $3,759 86.7 $6,244 $258,323 2 356 490 4 1131 6001 681 $217,920 $3,945 100.3 $7,219 $229,084 3 95 585 5 1875 5257 495 $158,400 $4,428 129.1 $9,295 $172,123 4 186
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Unformatted text preview: 771 6 2045 5087 461 $147,520 $4,539 134.8 $9,707 $161,766 5 34 805 8 2717 4415 349 $111,680 $4,975 155.4 $11,189 $127,845 6 112 917 9 3445 3687 258 $82,560 $5,449 175.0 $12,599 $100,608 8 91 1008 10 3580 3552 243 $77,760 $5,536 178.4 $12,844 $96,140 9 15 1023 12 4140 2992 187 $59,840 $5,900 191.8 $13,812 $79,552 10 56 1079 15 5160 1972 102 $32,640 $6,563 214.2 $15,420 $54,623 12 85 1164 16 5340 1792 90 $28,800 $6,680 217.9 $15,687 $51,167 15 12 1176 20 6108 1024 42 $13,440 $7,180 233.0 $16,777 $37,396 16 48 1224 24 6568 564 19 $6,080 $7,479 241.6 $17,397 $30,956 20 23 1247 36 6856 276 7 $2,240 $7,666 246.9 $17,774 $27,680 24 12 1259 48 7036 96 2 $640 $7,783 250.1 $18,006 $26,429 36 5 1264 0 7132 0 0 $0 $7,845 251.8 $18,129 $25,974 48 2 1266 DEMAND INPUT DATA Management Science ISBN 1-4039-4174-2, © H.G. Daellenbach and D.C. McNickle, 2005, Palgrave Publishers Ltd ....
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This note was uploaded on 05/23/2010 for the course IE 398 taught by Professor T during the Spring '10 term at Middle East Technical University.

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