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Unformatted text preview: IEOR 151 Notes 10/13 Team 12 Schedule: 10/12 presentations (4 6) 10/27 midterm (review session before) 11/8 NO LECTURE (work on project) 11/10 presentations (7 10) 11/17 presentations(11 13) 11/24 NO LECTURE (Thanksgiving) 12/1 overview: final exam, industry, not covered issues 12/6 week project 12/17 final project reports due INVENTORY MODELS Last Lecture: beer sellers problem Input: D, r, c, v Decision Variable: y Optimal Solution: prob(y>D)= C CC where Cu=r c underage cost Co=c v overage cost Suppose we cant return the beer (NO v), but we can keep it and sell it the next day (h, holding cost): Input: D, r, c, h C CC = Decision Variable: y Cu=r c Co=c+h Considering also (penalty cost) a loss of goodwill: Input: D, r, c, h, Decision Variable: y Cu=r c+ Co=c+h (s, S) POLICY itial invento Consider in If I > s inv r e If I < s ord (R, Q) POLIC ombina C example: They consid the hospita the bank: th...
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- Spring '09