EPQ Model

The annual demand D=8000 units. A production manager applied EPQ model and figured out the optimal decisions as follows p=200, u=80, Q*=1000 units, and inventory cycle time=12.5 days. Please draw an inventory profile that helps the manager visualize the inventory over time. Create a graph, please label the numbers for the following: Q*, Imax, average inventory, production run length, inventory cycle time, and number of cycles in a year.