Hw1-Solutions

# 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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## This note was uploaded on 07/20/2013 for the course ISYE 6201 taught by Professor Staff during the Fall '08 term at Georgia Tech.

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