4QA3 F12 Week 8 Lecture Notes

# Gandomi 13 1 compute q eoq 2 substitute q in

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Unformatted text preview: A. Gandomi 12 ●  Excess demand is backordered lost. R R Q Q s 0 s 0 ●  In this case, the optimal Q and R are found by: Q= 4QA3 F12 2 λ ( K + pn ( R ) ) h Qh and 1 − F ( R) = pλ + Qh A. Gandomi 13 1.  Compute Q = EOQ. 2.  Substitute Q in the following equation and compute R: Qh 1 − F ( R) = pλ 3.  Use R to compute n(R) using: () ∫ nR= ∞ R ( () ( x − R) f ( x ) dx when demand is normal: n R = σ L( z ) ) 4.  Find Q from: Q= ( ( )) 2 λ K + pn R h 5.  Go back to Step 2, continue until convergence occurs (which is generally very fast). 4QA3 F12 A. Gandomi 14 Problem 14 p. 279 Weiss’s paint store uses a (Q,R) inventory system to control its stock levels. For a particularly popular white paint, historical data shows that the distribution of monthly demand is approximately normal, with mean 28 and standard deviation 8. Replenishment lead time for this paint is about 14 weeks. Each can of paint costs the store \$6. Although excess demands are back- ordered, the store owner estima...
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## This document was uploaded on 04/01/2014.

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