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Unformatted text preview: Total cost/year = 2160 + 937.50 = $3097.50 b. See textbook (p. 641); EPQ = 3795 c. Look under part b in textbook (p. 641); Total cost /year = $2846.42 d. Penalty cost/year = 3097.50 – 2846.42 = $251.08 Problem 29: a. 08 . / 60 24000 2 * x x Q = = 6000 Total cost/month = (24000 x 60/6000) + (6000 x 0.08/2) = $480 Current cost/month = (24000 x 60/5000) + (5000 x 0.08/2) = $488 Penalty/month = 488 – 480 = $8 b. Q* = 3000, S = ? 08 . / 24000 2 3000 xS x = , so 24000 2 08 . ) 3000 ( 2 x x S = = $15 So ordering cost needs to be reduced by $45. ($60  $15) c. 08 . / 30 24000 2 * x x Q = = 4243...
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This note was uploaded on 11/04/2011 for the course DS 412 taught by Professor Eng during the Fall '07 term at S.F. State.
 Fall '07
 Eng

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