2 A B D E F G H 1 Evaluating Service Level with Quantity Discounts 0 = 200 Would the answer be different if there was $10 salvage value? Why? 150 150 40 40 2 3 4 5 6 7 8 9 10 11 12 Input Mean demand, u = Standard Deviation of Demand, o = Order size, O = Cost per unit, C = Retail price, p = Salvage Value, s = $ $ $ 50.00 200.00 $ $ $ 45.00 200.00 $ $ 50.00 150.00 0 $ $ 45.00 155.00 0 Cost of overstocking per unit, Co = Cost of understocking per unit, Cu = Expected overstock units (eqn 13.4) = Expected understock units (eqn 13.5) = Cycle service level, CSL (eqn. 13.1)= Critical fractile Expected profit (eqn 13.3) = 14 15 16 17 18 150 150 0.00 0.75 (0) $ 0.00 0.78 (0) $ 2 A B D E F G H 1 Evaluating Service Level with Quantity Discounts 0 = 200 Would the answer be different if there was $10 salvage value? Why? 150 150 40 40 2 3 4 5 6 7 8 9 10 11 12 Input Mean demand, u = Standard Deviation of Demand, o = Order size, O = Cost per unit, C = Retail price, p = Salvage Value, s = $ $ $ 50.00 200.00 $ $ $ 45.00 200.00 $ $ 50.00 150.00 0 $ $ 45.00 155.00 0 Cost of overstocking per unit, Co = Cost of understocking per unit, Cu = Expected overstock units (eqn 13.4) = Expected understock units (eqn 13.5) = Cycle service level, CSL (eqn. 13.1)= Critical fractile Expected profit (eqn 13.3) = 14 15 16 17 18 150 150 0.00 0.75 (0) $ 0.00 0.78 (0) $