Fig16-09_MultiPeriodDiscreteLostSales_

Fig16-09_MultiPeriodDiscreteLostSales_ - MULTI-PERIOD EOQ...

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Unformatted text preview: MULTI-PERIOD EOQ MODEL (Lost Sales) - DISCRETE LEAD-TIME DEMAND PROBLEM: Compact Discs Parameter Values Fixed Cost per Order: k = 20 Annual Demand Rate: A = 5000 Unit cost of Procuring an Item: c = 0.45 Annual Holding Cost per Dollar Value: h = 0.12 0.1 0.9 Number of demands for probability distribution = 10 Optimal Values: Optimal Order Quantity: Q* = 1925 Optimal Reorder Point: r* = 160 Expected Lead-Time Demand: mu = 123 Total Expected Cost: TEC(Q*) = $106.48 Expected Shortage: B(r*) = 0.40 Probability of Shortage: P[D>r*] = 0.03 Cumulative Number of Demand Probability Probability Shortages 90 0.05 0.05 100 0.12 0.17 110 0.17 0.34 120 0.22 0.56 130 0.19 0.75 140 0.14 0.89 150 0.05 0.94 160 0.03 0.97 170 0.02 0.99 10 180 0.01 1.00 20 Shortage Cost per Unit: p S = Shortage Cost per Unit: p R = 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 54 MULTI-PERIOD EOQ MODEL (Lost Sales) - DISCRETE LEAD-TIME DEMAND PROBLEM: Compact Discs Parameter Values Fixed Cost per Order: k = 20 Annual Demand Rate: A = 5000 Unit cost of Procuring an Item: c = 0.45 Annual Holding Cost per Dollar Value: h = 0.12 0.1 0.9 Number of demands for probability distribution = 10 Optimal Values: Optimal Order Quantity: Q* = 1935 Optimal Reorder Point: r* = 160 Expected Lead-Time Demand: mu = 123 Total Expected Cost: TEC(Q*) = $106.48 Expected Shortage: B(r*) = 0.40 Probability of Shortage: P[D>r*] = 0.03 Cumulative Number of Demand Probability Probability Shortages 90 0.05 0.05 100 0.12 0.17 110 0.17 0.34 120 0.22 0.56 130 0.19 0.75 140 0.14 0.89 150 0.05 0.94 160 0.03 0.97 170 0.02 0.99 10 180 0.01 1.00 20 Shortage Cost per Unit: p S = Shortage Cost per Unit: p R = 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 54 MULTI-PERIOD EOQ MODEL (Lost Sales) - DISCRETE LEAD-TIME DEMAND PROBLEM: Compact Discs Parameter Values Fixed Cost per Order: k = 20 Annual Demand Rate: A = 5000 Unit cost of Procuring an Item: c = 0.45 Annual Holding Cost per Dollar Value: h = 0.12 0.1 0.9 Number of demands for probability distribution = 10 Optimal Values: Optimal Order Quantity: Q* = 1935 Optimal Reorder Point: r* = 160 Expected Lead-Time Demand: mu = 123 Total Expected Cost: TEC(Q*) = $106.48 Expected Shortage: B(r*) = 0.40 Probability of Shortage:...
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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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Fig16-09_MultiPeriodDiscreteLostSales_ - MULTI-PERIOD EOQ...

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