Determine the average inventory level on hand of the following inventory cycles. Q is the order quantity, demand rate is D, and s represents the
Determine the average inventory level on hand of the following inventory cycles. Q is the order quantity, demand rate is D, and s represents the maximum backorder level. Assuming that the fixed ordering cost is A, holding cost is H $/unit/yea?r and backordering one unit is p $/unit/year develop the total inventory cost function TC(Q,s). Identify the optimal Q and optimal s.
Q-s 0 Demand rate D T T2 TIME
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Step: 1
Average inventory T1Qs2 0T2T 12QsT1 T 1 T QD or Q TD or TQ 1D 2 T1T QsQ ...
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Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
4th Edition
978-0730302414, 0730302415
