20pts time 1 2 3 4 5 6 demand 100 150 75 75 50 60

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Unformatted text preview: 
 IP(t)
 gets
 to
 the
 Ql
 level,
 we
 place
 a
 replenishment
 order
 and
 we
 increase
 IP(t)
 by
 Qc).
 
 
 Finally,
 the
 reorder
 point
 with
 respect
 to
 OHI(t)
 is
 provided
 from
 the
 reorder
 point
 with
 respect
 to
 IP(t)
 through
 (1),
 when
 noticing
 that
 BO(t)
 =
 0.
 
 The
 main lesson
 of
 the
 above
 discussion
 is
 that
 in
 the
 EOQ
 context,
 reorder
 points
 should
 be
 specified
 according
 to
 the
 formula
 
 ROP
 =
 l
 D
 but
 with
 respect
 to
 the
 inventory
 position,
 and
 not
 the
 on­hand­inventory.
 
 4.
(20
pts)
 Order
 quantity
 given
 data
 Item
 1
 2
 3
 D
 12,500
 15,000
 15,000
 A
 150
 80
 80
 h
 2.4
 3.5
 3
 Unit.
 Stor( )
 5
 4
 4
 EOQ
 1250
 828.0786712
 894.427191
 Stor.
 Need
 6250
 3312.314685
 3577.708764
 Total
 Storage
 13140.02345
 
 Since
 total
 required
 storage
 area
 is
 over
 6000
 sq.
 ft.,
 we
 need
 to
 adjust
 order
 quantities.
 We
 can
 find
 the
 optimal
 order
 quantities
 through
 the
 search
 process
 over
 the
 Lagrange
 multiplier
 λ,
 discussed
 in
 class,
 that
 computes
 the
 values
 
 and
 checks
 whether
 they
 satisfy
 the
 resource
 constraint
 as
 equality.
 
 
 
 
 
 
 After
 some
 search
 on
 the
 values...
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