Ch17_Inventory_Control

# Ch17_Inventory_Control - Example 17.1 Hotel Reservations...

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Example 17.1 Hotel Reservations - Full Marginal Analysis Solution \$200.00 Cost per unit of demand overestimated \$80.00 Cost per unit of demand underestimated Number of Units Overbooked No-shows Probability 0 1 2 3 4 5 6 0 0.050 - 200 400 600 800 1,000 1,200 1 0.080 80 - 200 400 600 800 1,000 2 0.100 160 80 - 200 400 600 800 3 0.150 240 160 80 - 200 400 600 4 0.200 320 240 160 80 - 200 400 5 0.150 400 320 240 160 80 - 200 6 0.110 480 400 320 240 160 80 - 7 0.060 560 480 400 320 240 160 80 8 0.050 640 560 480 400 320 240 160 9 0.040 720 640 560 480 400 320 240 10 0.010 800 720 640 560 480 400 320 Total Cost 337.6 271.6 228.0 212.4 238.8 321.2 445.6 C o = C u = 0 1 2 3 4 5 6 7 8 9 10 0 200 400 600 800 1000 1200 1400 Number Overbooked Expected Cost (\$)

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7 8 9 10 1,400 1,600 1,800 2,000 1,200 1,400 1,600 1,800 1,000 1,200 1,400 1,600 800 1,000 1,200 1,400 600 800 1,000 1,200 400 600 800 1,000 200 400 600 800 - 200 400 600 80 - 200 400 160 80 - 200 240 160 80 - 600.8 772.8 958.8 1,156.0
Example 17.2 - EOQ and Reorder Point 1000 \$5.00 \$1.25 Days in operation per year = 360 5 \$12.50 Tota Exhibit 17.5 - Basic Fixed Order Quantity Model X ROP Annual demand ( D ) Ordering cost ( S ) Holding cost per unit per year ( H ) Lead time ( L ) Cost per unit ( C ) 0 20 40 60 80 100 120 0.0 50.0 100.0 Column D Time Horizon Quantity

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0 13.9 162.0 13.9 T CumProd Q y 63 0 0 1000 63 300.0 162.0 Time InvLevel Usage CumProd CumInv 0.0 90.0 0 CumInv 0.0 90.0 0.0 0 UseInv 0.0 90.0 90.0 0 UseInv 32.4 0.0 0 CumInv 32.4 90.0 0 CumInv 32.4 90.0 0.0 0 UseInv 32.4 90.0 90.0 0 UseInv 64.8 0.0 0 CumInv 64.8 90.0 0.0 0 CumInv 64.8 90.0 90.0 0 UseInv 64.8 90.0 0 UseInv 97.2 0.0 0 CumInv 97.2 90.0 0.0 0 CumInv 97.2 90.0 90.0 0 UseInv 97.2 90.0 0 UseInv 129.6 0.0 0 CumInv 129.6 90.0 0.0 0 CumInv 129.6 90.0 90.0 0 UseInv 129.6 90.0 0 UseInv 162.0 0.0 0
90 Average Inventory = 45.0 Reorder point = 13.9 Days per cycle = 32.4 Number of cycles per year = 11.1 al Annual Holding and Ordering Cost = \$111.81 Total Cost = 12,611.81 Q 0 = 140 160 180 13.9 Column F Column E Column F

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13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9
Exhibit 17.6 - Total Cost Graph for Basic Fixed-Order Quantity Model 1000 \$5.00 \$1.25 90 Annual demand ( D ) Per Order cost ( S ) Holding cost per unit per year ( H ) Q opt = 0 50 100 150 200 250 300 350 400 0.0 100.0 200.0 300.0 400.0 500.0 600.0 \$111.8 Column C Column D Column E Co Order Quantity Cost (\$)

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Increment Q 10 Q CumProd QBEP TC 91 0 0 90 0 112 91 112 112 90 91 112 Q THC TSC TC 0 0.0 0 0.0 10 6.3 500.0 506.3 20 12.5 250.0 262.5 30 18.8 166.7 185.4 40 25.0 125.0 150.0 50 31.3 100.0 131.3 60 37.5 83.3 120.8 70 43.8 71.4 115.2 80 50.0 62.5 112.5 90 56.3 55.6 111.8 100 62.5 50.0 112.5 110 68.8 45.5 114.2 120 75.0 41.7 116.7 130 81.3 38.5 119.7 140 87.5 35.7 123.2 150 93.8 33.3 127.1 160 100.0 31.3 131.3 170 106.3 29.4 135.7 180 112.5 27.8 140.3 190 118.8 26.3 145.1 200 125.0 25.0 150.0 210 131.3 23.8 155.1 220 137.5 22.7 160.2 230 143.8 21.7 165.5 240 150.0 20.8 170.8 250 156.3 20.0 176.3
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Ch17_Inventory_Control - Example 17.1 Hotel Reservations...

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