Inventory_Thumbnail_Notes

Inventory_Thumbnail_Notes - Inventory Thumbnail Notes...

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Inventory Thumbnail Notes Models: Deterministic Models: 1. Economic Order Quantity (EOQ) – use when demand is known, constant, backorders/shortages are not allowed, and inventory usage is constant. Parameter Values: Fixed Cost per Order: k = Annual Number of Items Demanded: A = Unit Cost of Procuring an Item: c = Annual Holding Cost per Dollar Value: h = What is to be determined? Q = order quantity. 2. Economic Production Quantity (EPQ or POQ) – use when you produce, and everything else meets the conditions for the EOQ. Parameter Values: Fixed Set-Up Cost per Run: k = Annual Number of Items Demanded: A = Annual Production Rate: B = Variable Production Cost per Unit: c = Annual Holding Cost per Dollar Value: h = What is to be determined? Q = order quantity 3. EOQ Backorder (S, Q Policy) – same conditions as EOQ, except backorders are allowed. Parameter Values: Fixed Cost per Order: k = Annual Number of Items Demanded: A = Unit Cost of Procuring an Item: c = Annual Holding Cost per Dollar Value: h = Annual Cost of Being Short One Item: p =
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What is to be determined? Q = order quantity; and S = order level (maximum inventory
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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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Inventory_Thumbnail_Notes - Inventory Thumbnail Notes...

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