Ch12Ex3 - Chapter 12: Example 3 Inventory Economic Order...

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Unformatted text preview: Chapter 12: Example 3 Inventory Economic Order Quantity Model Data Demand rate, D 1000 Setup cost, S 10 Holding cost, H 0.5 (fixed amount) Unit Price, P Daily demand rate Lead time in days Results Optimal Order Quantity, Q* 200 Maximum Inventory 200 Average Inventory 100 Number of Setups 5 Holding cost $50.00 Setup cost $50.00 Unit costs $0.00 $100.00 Reorder Point COST TABLE Start at 50 Increment b 16.67 Q Setup cost Holding cosTotal cost 50 200 12.5 212.5 66.67 150 16.67 166.67 83.33 120 20.83 140.83 100 100 25 125 116.67 85.71 29.17 114.88 133.33 75 33.33 108.33 150 66.67 37.5 104.17 166.67 60 41.67 101.67 183.33 54.55 45.83 100.38 200 50 50 100 216.67 46.15 54.17 100.32 233.33 42.86 58.33 101.19 250 40 62.5 102.5 266.67 37.5 66.67 104.17 283.33 35.29 70.83 106.13 300 33.33 75 108.33 316.67 31.58 79.17 110.75 333.33 30 83.33 113.33 350 28.57 87.5 116.07 Total cost, T c 5 1 5 2 5 3 50 100 150 200 250 Inventory: Cost vs Qu Order Quantity (Q) Cost ($) Enter the data in the shaded area 366.67366....
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Ch12Ex3 - Chapter 12: Example 3 Inventory Economic Order...

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