Decision Making Model

# Decision Making - SUBDOMAIN309. Competency 309.3.1 Decision Making Models The graduate uses optimizing models and Objective309.3.106: Objective309.3

This preview shows pages 1–2. Sign up to view the full content.

SUBDOMAIN 309.3 - QUANTITATIVE ANALYSIS   Competency 309.3.1: Decision Making Models -  The graduate uses optimizing models and  other models as aids for making more informed decisions.   Objective 309.3.1-06:  Determine order size using the economic order quantity model. Objective 309.3.1-07:  Determine lot size using the economic production lot size model. Introduction:   A variety of criteria and techniques can be used to determine how many units of a product to  purchase or produce and what parameters to set for inventory management. In this task, apply the  economic order quantity model and the economic production lot model to related decisions.   Given:   Company A’s demand is uniform throughout the year and totals 18,000 units per year. Ordering  costs total \$38 per order. The annual holding cost rate is 26% of the value of the inventory. The  per-unit cost of inventory is \$12.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 03/01/2012 for the course ACCOUTNING 550 taught by Professor Abner during the Spring '11 term at DeVry Houston.

### Page1 / 3

Decision Making - SUBDOMAIN309. Competency 309.3.1 Decision Making Models The graduate uses optimizing models and Objective309.3.106: Objective309.3

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online