{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

4QA3 F12 Week 7 Lecture Notes

# O incremental discount the discount is applied only

This preview shows page 1. Sign up to view the full content.

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

Unformatted text preview: when τ < T) Inventory Level Order quantity, Q Slope=−λ Reorder point, R Lead time Order Order placed received 4QA3 F12 A. Gandomi Lead time Order Order placed received Time 22 ●  Consider an item with an EOQ of 25, a demand rate of 500 units per year, and a lead time of six weeks. R = λ (τ − mT ) "τ \$ where m = " \$ ( the largest integer less than or equal to τ T ) #T % Source: Nahmias (2009) 4QA3 F12 A. Gandomi 23 ●  ●  The EOQ model with Iinite production rate is a variation of the basic EOQ model. Inventory is replenished gradually as the order is produced (which requires the production rate to be greater than the demand rate). 4QA3 F12 Source: Nahmias (2009) 24 P: production rate λ: demand rate Assume P > λ (i.e., no shortage) ⎛ྎ Q ⎞ྏ ⎛ྎ λ ⎞ྏ H = Q − λT1 = Q − λ ⎜ྎ ⎟ྏ = Q ⎜ྎ1 − ⎟ྏ ⎝ྎ P ⎠ྏ ⎝ྎ P ⎠ྏ λ H λ λQ Now, G (Q ) = K + h ⋅ = K + h(1 − ) ⇒ Q 2 Q P2 4QA3 F12 2K λ h' h' Q* H Inventory Level Inventory level with no demand Q* = Production Phase Demand Phase Time 25 A toy manufacturer uses 48,000 rubber wheels per year for its popular dump truck series. The Iirm makes its own wheels at a rate of 800 per day. The toy trucks are assembled uniformly over the entire year. Holding cost is \$1 per wheel a tear. Setup cost for a production run of wheels is \$45. The Iirm operates 240 days per year. Find the optimal run size, total cost, cycle time and run time. 4QA3 F12 A. Gandomi 26 ●  Price per unit decreases as order quantity increases o  All- units discount: the discount is applied to ALL of the units in the...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online