MSE260_Session_4_2013_Sol

If cq 10q eoq 1306 then q800 tc 2006400800 800201510

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Unformatted text preview: step: we calculate the EOQs. If cQ =$10Q, EOQ=√ =1306, then Q=800. TC= (200*6400)/800 + (800/2)*0.15*10 + 10*6400 = $66200. If cQ =$8,000 + $9 (Q – 800), EOQ=√ =3079, then Q=1200. TC= ((200+800)*6400)/1200 + (9*1200+800)/2*0.15 + 9*6400 = $63803. If cQ =$11,600 + $8 (Q – 1200), EOQ=√ =4844, then Q=1600. TC= ((200+2000)*6400)/1600 + (8*1600+2000)/2*0.15 + 8*6400 = $61110. If cQ =$14,800 + $7 (Q – 1600), EOQ=√ =6806, then Q=6806. TC= ((200+3600)*6400)/6806 + (7*6806+3600)/2*0.15 + 7*6400 = $52216. The optimal order quantity is Q =6806, for a Total Cost = $52216. Discussion Session #4 3/3...
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This document was uploaded on 02/05/2014.

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