Fig16-10_MultiPeriodNormalBackordering

# Fig16-10_MultiPeriodNormalBackordering - MULTI-PERIOD EOQ...

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Unformatted text preview: MULTI-PERIOD EOQ MODEL (Backordering) - NORMAL LEAD-TIME DEMAND PROBLEM: Unleaded Gas at Oil Refinery Parameter Values: Mean of Demand Distribution: mu = 200,000 Stand. Deviation of Demand Distribution: sigma = 20,000 Fixed Cost per Order: k = 1,000 Annual Demand Rate: A = 40,000,000 Unit Cost of Procuring an Item: c = 0.40 Annual Holding Cost per Dollar Value: h = 0.20 0.05 Optimal Values: Optimal Order Quantity: Q* = 1,000,000 Optimal Reorder Point: r* = 235,014 Expected Demand: mu = 200,000 Total Expected Cost: TEC(Q*) = \$83,447.90 Expected Shortages: B(r*) = 323.40 Probability of Shortage: P[D>r*] = 0.04 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 MULTI-PERIOD EOQ MODEL (Backordering) - NORMAL LEAD-TIME DEMAND PROBLEM: Unleaded Gas at Oil Refinery Parameter Values: Mean of Demand Distribution: mu = 200,000 Stand. Deviation of Demand Distribution: sigma = 20,000 Fixed Cost per Order: k = 1,000 Annual Demand Rate: A = 40,000,000 Unit Cost of Procuring an Item: c = 0.40 Annual Holding Cost per Dollar Value: h = 0.20 0.05 Optimal Values: Optimal Order Quantity: Q* = 1,008,053 Optimal Reorder Point: r* = 234,939 Expected Demand: mu = 200,000 Total Expected Cost: TEC(Q*) = \$83,455.61 Expected Shortages: B(r*) = 331.60 Probability of Shortage: P[D>r*] = 0.04 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 MULTI-PERIOD EOQ MODEL (Backordering) - NORMAL LEAD-TIME DEMAND PROBLEM: Unleaded Gas at Oil Refinery Parameter Values: Mean of Demand Distribution: mu = 200,000 Stand. Deviation of Demand Distribution: sigma = 20,000 Fixed Cost per Order: k = 1,000 Annual Demand Rate: A = 40,000,000 Unit Cost of Procuring an Item: c = 0.40 Annual Holding Cost per Dollar Value: h = 0.20 0.05 Optimal Values: Optimal Order Quantity: Q* = 1,008,256 Optimal Reorder Point: r* = 234,937 Expected Demand: mu = 200,000 Total Expected Cost: TEC(Q*) = \$83,455.46 Expected Shortages: B(r*) = 331.60 Probability of Shortage: P[D>r*] = 0.04 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 MULTI-PERIOD EOQ MODEL (Backordering) - NORMAL LEAD-TIME DEMAND PROBLEM: Unleaded Gas at Oil Refinery Parameter Values: Mean of Demand Distribution: mu = 200,000 Stand. Deviation of Demand Distribution: sigma = 20,000 Fixed Cost per Order: k = 1,000 Annual Demand Rate: A = 40,000,000 Unit Cost of Procuring an Item: c = 0.40 Annual Holding Cost per Dollar Value: h = 0.20 0.05 Optimal Values: Optimal Order Quantity: Q* = 1,008,256 Optimal Reorder Point: r* = 234,937 Expected Demand: mu = 200,000 Total Expected Cost: TEC(Q*) = \$83,455.46 Expected Shortages: B(r*) = 331.60 Probability of Shortage: P[D>r*] = 0.04 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 MULTI-PERIOD EOQ MODEL (Backordering) - NORMAL LEAD-TIME DEMAND...
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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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Fig16-10_MultiPeriodNormalBackordering - MULTI-PERIOD EOQ...

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