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Could you please answer the attached question ? Consider N retailers which order a common item. Let i be the deter - ministic demand rate
Could you please answer the attached question Consider retailers which order a common item. Let be the deter
ministic demand rate for the item at retailer The unit purchasing cost and the
holding cost rate of the item is the same for all retailers and respectively Let
be the fixed order cost for the item at retailer again same at all warehouses
Assume also that no planned backorders are allowed. In summary, each retailer
operates in an EOQ environment. Let's call this system "the decentralised model"
DM An alternative mode of operation is to centralise the ordering decision of
the retailers. A central decision making unit will order a consolidated quantity for
all retailers, considering the total demand The fixed ordering cost for
the consolidated system is where We call the second system as
the centralised model" CM
a Find the range of values for which always performs better
than DM
b For discuss that the performance of become similar
better as the warehouses become more symmetric and become similar
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