Fig16-08_MultiPeriodDiscreteBackordering

Fig16-08_MultiPeriodDiscreteBackordering - MULTI-PERIOD EOQ...

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Unformatted text preview: MULTI-PERIOD EOQ MODEL (Backordering) - DISCRETE LEAD-TIME DEMAND PROBLEM: Printer Cartridges Parameter Values Fixed Cost per Order: k = 5 Annual Demand Rate: A = 1500 Unit cost of Procuring an Item: c = 1.5 Annual Holding Cost per Dollar Value: h = 0.12 0.5 Number of demands for probability distribution = 11 Optimal Values: Optimal Order Quantity: Q* = 288.68 Optimal Reorder Point: r* = 7 Expected Lead-Time Demand: mu = 4 Total Expected Cost: TEC(Q*) = $52.7094 Expected Shortage: B(r*) = 0.08 Probability of Shortage: P[D>r*] = 0.05 Cumulative Number of Demand Probability Probability Shortages 0.01 0.01 1 0.07 0.08 2 0.16 0.24 3 0.20 0.44 4 0.19 0.63 5 0.16 0.79 6 0.10 0.89 7 0.06 0.95 8 0.03 0.98 1 9 0.01 0.99 2 10 0.01 1.00 3 Shortage Cost per Unit: p S = A B C D E F G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 MULTI-PERIOD EOQ MODEL (Backordering) - DISCRETE LEAD-TIME DEMAND PROBLEM: Printer Cartridges Parameter Values Fixed Cost per Order: k = 5 Annual Demand Rate: A = 1500 Unit cost of Procuring an Item: c = 1.5 Annual Holding Cost per Dollar Value: h = 0.12 0.5 Number of demands for probability distribution = 11 Optimal Values: Optimal Order Quantity: Q* = 289.83 Optimal Reorder Point: r* = 7 Expected Lead-Time Demand: mu = 4 Total Expected Cost: TEC(Q*) = $52.7090 Expected Shortage: B(r*) = 0.08 Probability of Shortage: P[D>r*] = 0.05 Cumulative Number of Demand Probability Probability Shortages 0.01 0.01 1 0.07 0.08 2 0.16 0.24 3 0.20 0.44 4 0.19 0.63 5 0.16 0.79 6 0.10 0.89 7 0.06 0.95 8 0.03 0.98 1 9 0.01 0.99 2 10 0.01 1.00 3 Shortage Cost per Unit: p S = A B C D E F G H 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 MULTI-PERIOD EOQ MODEL (Backordering) - DISCRETE LEAD-TIME DEMAND PROBLEM: Printer Cartridges Parameter Values Fixed Cost per Order: k = 5 Annual Demand Rate: A = 1500 Unit cost of Procuring an Item: c = 1.5 Annual Holding Cost per Dollar Value: h = 0.12 0.5 Number of demands for probability distribution = 11 Optimal Values: Optimal Order Quantity: Q* = 289.83 Optimal Reorder Point: r* = 7 Expected Lead-Time Demand: mu = 4 Total Expected Cost: TEC(Q*) =...
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This note was uploaded on 12/02/2011 for the course QM 670 taught by Professor Dr.keeney during the Fall '11 term at Jefferson College.

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Fig16-08_MultiPeriodDiscreteBackordering - MULTI-PERIOD EOQ...

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