missing slides - ch5 - part 2

# missing slides - ch5 - part 2 - 1500.00 60600.00 1200.00...

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In answer to April’s question all the numbers are referring to individual units. The “ Boxes, 200” is simply a stipulation that for that vendor all orders must be full boxes and each box holds 200 units – therefore, even though the Qo = 1084.65, you must decide whether it makes more sense to order 1000 or 1200 (increments of 200).

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D = 12,000 units / year, H: 30% of C Vendor RR QQ PP Lot size Boxes, 200 ≥ 6000 S \$75 \$150 \$200 price /unit \$5.10 \$5.05 \$5.00 H 2 EOQ - Ex.: 3.3, (different vendors with different “deals” ) Q 0 Lot size Q* Annual cost Purchase \$ Ordering \$ Holding \$ Total \$ Vendor RR, [0, 1000], Annual cost: \$62865 Q O = {2 * D * S / H} \$1.50 1788.55 6000.00 60000.00 400.00 4500.00 64900.00 \$1.515 1541.50
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Unformatted text preview: 1500.00 60600.00 1200.00 1136.25 62936.25 \$1.53 1084.65 1200.00 61200.00 750.00 918.00 62868.00 1000.00 61200.00 900.00 765.00 62865.00 Price/unit * 30% (Q O = {2 * D * S / H}) (D * P) (D/Q) * S (Q/2)* H TC = carrying cost + ordering costs + purchase costs 3 EOQ EOQ discount EPQ H May be proportional to purchase price Q 0 (optimal) {2 * D * S / H} {2 * D * S / H} [2*D*S /H] * [p / (p – u)] Q* (lot size) Round off within ± 5% within ± 5% within range within ± 5% Annual cost S.D/Q + H.Q / 2 D.C + S.D/Q + H.Q / 2 S.D/Q + H. (Q/2) (p - u) / p Lead time Yes Yes Constraint Yes Yes Yes Overview of Formulas – see p. 244 in text...
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missing slides - ch5 - part 2 - 1500.00 60600.00 1200.00...

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