Fig16-11_MultiPeriodNormalLostSales_

# Fig16-11_MultiPeriodNormalLostSales_ - MULTI-PERIOD EOQ...

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Unformatted text preview: MULTI-PERIOD EOQ MODEL (Lost Sales) - NORMAL LEAD-TIME DEMAND PROBLEM: Roger's Sentinel Station Parameter Values: Mean of Demand Distribution: mu = 1,000 Stand. Deviation of Demand Distribution: sigma = 50 Fixed Cost per Order: k = 100 Annual Demand Rate: A = 500,000 Unit Cost of Procuring an Item: c = 1.48 Annual Holding Cost per Dollar Value: h = 0.19 0.25 1.75 Optimal Values: Optimal Order Quantity: Q* = 18,858 Optimal Reorder Point: r* = 1,103 Expected Demand: mu = 1,000 Total Expected Cost: TEC(Q*) = 5,336.87 Expected Shortages: B(r*) = 0.37 Probability of Shortage: P[D>r*] = 0.02 Shortage Cost per Unit: p S = Selling Price 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 MULTI-PERIOD EOQ MODEL (Lost Sales) - NORMAL LEAD-TIME DEMAND PROBLEM: Roger's Sentinel Station Parameter Values: Mean of Demand Distribution: mu = 1,000 Stand. Deviation of Demand Distribution: sigma = 50 Fixed Cost per Order: k = 100 Annual Demand Rate: A = 500,000 Unit Cost of Procuring an Item: c = 1.48 Annual Holding Cost per Dollar Value: h = 0.19 0.25 1.75 Optimal Values: Optimal Order Quantity: Q* = 18,876 Optimal Reorder Point: r* = 1,103 Expected Demand: mu = 1,000 Total Expected Cost: TEC(Q*) = 5,336.87 Expected Shortages: B(r*) = 0.37 Probability of Shortage: P[D>r*] = 0.02 Shortage Cost per Unit: p S = Selling Price 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 MULTI-PERIOD EOQ MODEL (Lost Sales) - NORMAL LEAD-TIME DEMAND PROBLEM: Roger's Sentinel Station Parameter Values: Mean of Demand Distribution: mu = 1,000 Stand. Deviation of Demand Distribution: sigma = 50 Fixed Cost per Order: k = 100 Annual Demand Rate: A = 500,000 Unit Cost of Procuring an Item: c = 1.48 Annual Holding Cost per Dollar Value: h = 0.19 0.25 1.75 Optimal Values: Optimal Order Quantity: Q* = 18,876 Optimal Reorder Point: r* = 1,103 Expected Demand: mu = 1,000 Total Expected Cost: TEC(Q*) = 5,336.87 Expected Shortages: B(r*) = 0.37 Probability of Shortage: P[D>r*] = 0.02 Shortage Cost per Unit: p S = Selling Price 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 MULTI-PERIOD EOQ MODEL (Lost Sales) - NORMAL LEAD-TIME DEMAND PROBLEM: Roger's Sentinel Station Parameter Values: Mean of Demand Distribution: mu = 1,000 Stand. Deviation of Demand Distribution: sigma = 50 Fixed Cost per Order: k = 100 Annual Demand Rate: A = 500,000 Unit Cost of Procuring an Item: c = 1.48 Annual Holding Cost per Dollar Value: h = 0.19 0.25 1.75 Optimal Values: Optimal Order Quantity: Q* = 18,876 Optimal Reorder Point: r* = 1,103 Expected Demand: mu = 1,000 Total Expected Cost: TEC(Q*) = 5,336.87 Expected Shortages: B(r*) = 0.37 Probability of Shortage: P[D>r*] = 0.02 Shortage Cost per Unit: p S = Selling Price 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 MULTI-PERIOD EOQ MODEL (Lost Sales) - 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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Fig16-11_MultiPeriodNormalLostSales_ - MULTI-PERIOD EOQ...

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