inventory management ii lot sizing lecture 5 esd.260 fall 2003 caplice

Inventory Management II Lot Sizing

Lecture 5ESD260 Fall 2003

Caplice

Outline

EOQ Model

Sensitivity Analysis

Discounting1048708

All Units1048708

Incremental1048708

One Time Special

MIT Center for Transportation amp Logistics - ESD260 2 copy Chris Caplice MIT

Assumptions Basic EOQ Model Demand1048708 Constant vs Variable1048708 Known vs Random1048708 Continuous vs Discrete Lead time Instantaneous1048708 Constant or Variable (deterministicstochastic) Dependence of items 1048708 Independent Correlated1048708 Indentured 1048708 Review Time Continuous vs Periodic Number of Echelons1048708 One vs Many Capacity Resources1048708 Unlimited vs Limited

Discounts1048708 None1048708 All Units or Incremental Excess Demand1048708 None1048708 All orders are backordered1048708 Lost orders1048708 Substitution Perishability1048708 None1048708 Uniform with time Planning Horizon1048708 Single Period1048708 Finite Period1048708 Infinite Number of Items1048708 One1048708 Many


Notation

TC = Total Cost (dollartime) D = Average Demand (unitstime) Co = Ordering Cost (dollarorder) Ch = Holding Cost (dollarsdollars heldtime) Cp = Purchase Cost (dollarsunit) Q = Order Quantity (unitsorder) T = Order Cycle Time (timeorder)


Lot Sizing Many Potential Policies


Inve

nto

ry O

n H

and

Time

Objective Pick the policy with the lowest total cost

I(t)

What is the total cost

TC = Purchase + Order + Holding + Shortage Cost

Which costs are relevant Purchase Costs

Ordering Costs

Holding Costs

Shortage Costs


02

( ) h pQD

QTC Q C C C

Economic Order Quantity (EOQ)

0[ ]

2

h pC D C C QTC Q

Q

02

h p

DCQ

C C


0 2 h pTC DC C C

Simple EOQ Example

Annual demand of widgets is 2000 The cost of ordering is $500 Widgets are procured for $50 each and are sold for $95 each Holding cost is estimated to be 25

What is the EOQ Total Cost and Cycle Time

Q = 400 units TC = $5000 year T = 020 years or 73 days


Total Cost versus Lot (Order) Size


Lot Size

Ann

ual

Cos

t

Annual Cost vs Order Quantity

The Effect of Non-Optimal Q

Q DCoQ ChCpQ2 TC

2000 $500 $12500 $13000

500 $2000 $3125 $5125

400 $2500 $2500 $5000

200 $5000 $1250 $6250

20 $50000 $125 $50125


So how sensitive is TC to Q

Sensitivity of EOQ

How does TC change with Q

02

( ) h pQD

QTC Q C C C

0( ) 2 p hTC Q C C C D

( ) 1

( ) 2

TC Q Q Q

TC Q Q Q


Sensitivity of EOQ

Sensitivity TC wrt Q


Sensitivity of EOQ

What if our estimate of demand was off E = Actual Demand Estimated Demand

Qrsquo = Estimated EOQ

Q = Actual EOQ given actual demand that occurred

D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E


Sensitivity of EOQ to Parameter Error

So for Drsquo = 2000 unitsyear if the

actual demand was hellip

D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ

There is a direct trade off between lot size and total inventory

Total cost is relatively insensitive to changes

Very robust with respect to changes in Q ndashrounding of order quantities1048708 D ndasherrors in forecasting1048708

Ch Co Cp ndasherrors in cost parameters

Thus EOQ is widely used despite its highly restrictive assumptions


Introduce Discounts to Lot Sizing Types

Types of discounts1048708

All units discount1048708

Incremental discount1048708

One time only discount

How will different discounting strategies impact your lot sizing decision


All Units Discount

Unit Price

[Cpi ]

Price Break Quantity

[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount

Need to introduce purchase cost into TC function


0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount MethodSame Example

D=2000 Unitsyr

Ch=25

Co=$500

CpiPrice Breaks $50 for 0 to lt500 units $45 for 500 to lt1000 units $40 for 1000+ units


1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000

Incremental Discount

Treatment of the Incremental DiscountCost of Each Unit in the Lot

Cost of the Unit

Lot UnitMIT Center for Transportation amp Logistics - ESD260 22 copy Chris Caplice MIT



Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount


Let 1048708 Cpg= One time deal purchase price ($unit)1048708 Qg= One time special order quantity (units)1048708 TCsp=TC over time covered by special purchase ($)

Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2

g ww w w gnsp g pg w p g w h pg h p

w

Q QQ Q Q QTC Q D C Q C Q Q C C C C C

D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount


A quick numerical example

D = 2000 units year Co= $50000 order Ch= 25 Cp= $5000 uni Q = 400 units TC = $500000 year

Cpg= $4500 unit Qg= 1333 Savings = $244825

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Outline

EOQ Model

Sensitivity Analysis

Discounting1048708

All Units1048708

Incremental1048708

One Time Special





Notation





Inve

nto

ry O

n H

and

Time


I(t)




Ordering Costs

Holding Costs

Shortage Costs


02

( ) h pQD

QTC Q C C C


0[ ]

2

h pC D C C QTC Q

Q

02

h p

DCQ

C C


0 2 h pTC DC C C

Simple EOQ Example







Lot Size

Ann

ual

Cos

t



Q DCoQ ChCpQ2 TC

2000 $500 $12500 $13000

500 $2000 $3125 $5125

400 $2500 $2500 $5000

200 $5000 $1250 $6250

20 $50000 $125 $50125



Sensitivity of EOQ


02

( ) h pQD

QTC Q C C C


( ) 1

( ) 2

TC Q Q Q

TC Q Q Q


Sensitivity of EOQ



Sensitivity of EOQ




D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E





D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





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Notation





Inve

nto

ry O

n H

and

Time


I(t)




Ordering Costs

Holding Costs

Shortage Costs


02

( ) h pQD

QTC Q C C C


0[ ]

2

h pC D C C QTC Q

Q

02

h p

DCQ

C C


0 2 h pTC DC C C

Simple EOQ Example







Lot Size

Ann

ual

Cos

t



Q DCoQ ChCpQ2 TC

2000 $500 $12500 $13000

500 $2000 $3125 $5125

400 $2500 $2500 $5000

200 $5000 $1250 $6250

20 $50000 $125 $50125



Sensitivity of EOQ


02

( ) h pQD

QTC Q C C C


( ) 1

( ) 2

TC Q Q Q

TC Q Q Q


Sensitivity of EOQ



Sensitivity of EOQ




D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E





D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





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Inve

nto

ry O

n H

and

Time


I(t)




Ordering Costs

Holding Costs

Shortage Costs


02

( ) h pQD

QTC Q C C C


0[ ]

2

h pC D C C QTC Q

Q

02

h p

DCQ

C C


0 2 h pTC DC C C

Simple EOQ Example







Lot Size

Ann

ual

Cos

t



Q DCoQ ChCpQ2 TC

2000 $500 $12500 $13000

500 $2000 $3125 $5125

400 $2500 $2500 $5000

200 $5000 $1250 $6250

20 $50000 $125 $50125



Sensitivity of EOQ


02

( ) h pQD

QTC Q C C C


( ) 1

( ) 2

TC Q Q Q

TC Q Q Q


Sensitivity of EOQ



Sensitivity of EOQ




D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E





D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





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Ordering Costs

Holding Costs

Shortage Costs


02

( ) h pQD

QTC Q C C C


0[ ]

2

h pC D C C QTC Q

Q

02

h p

DCQ

C C


0 2 h pTC DC C C

Simple EOQ Example







Lot Size

Ann

ual

Cos

t



Q DCoQ ChCpQ2 TC

2000 $500 $12500 $13000

500 $2000 $3125 $5125

400 $2500 $2500 $5000

200 $5000 $1250 $6250

20 $50000 $125 $50125



Sensitivity of EOQ


02

( ) h pQD

QTC Q C C C


( ) 1

( ) 2

TC Q Q Q

TC Q Q Q


Sensitivity of EOQ



Sensitivity of EOQ




D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E





D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





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0[ ]

2

h pC D C C QTC Q

Q

02

h p

DCQ

C C


0 2 h pTC DC C C

Simple EOQ Example







Lot Size

Ann

ual

Cos

t



Q DCoQ ChCpQ2 TC

2000 $500 $12500 $13000

500 $2000 $3125 $5125

400 $2500 $2500 $5000

200 $5000 $1250 $6250

20 $50000 $125 $50125



Sensitivity of EOQ


02

( ) h pQD

QTC Q C C C


( ) 1

( ) 2

TC Q Q Q

TC Q Q Q


Sensitivity of EOQ



Sensitivity of EOQ




D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E





D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





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Simple EOQ Example







Lot Size

Ann

ual

Cos

t



Q DCoQ ChCpQ2 TC

2000 $500 $12500 $13000

500 $2000 $3125 $5125

400 $2500 $2500 $5000

200 $5000 $1250 $6250

20 $50000 $125 $50125



Sensitivity of EOQ


02

( ) h pQD

QTC Q C C C


( ) 1

( ) 2

TC Q Q Q

TC Q Q Q


Sensitivity of EOQ



Sensitivity of EOQ




D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E





D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





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Lot Size

Ann

ual

Cos

t



Q DCoQ ChCpQ2 TC

2000 $500 $12500 $13000

500 $2000 $3125 $5125

400 $2500 $2500 $5000

200 $5000 $1250 $6250

20 $50000 $125 $50125



Sensitivity of EOQ


02

( ) h pQD

QTC Q C C C


( ) 1

( ) 2

TC Q Q Q

TC Q Q Q


Sensitivity of EOQ



Sensitivity of EOQ




D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E





D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

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Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29


Q DCoQ ChCpQ2 TC

2000 $500 $12500 $13000

500 $2000 $3125 $5125

400 $2500 $2500 $5000

200 $5000 $1250 $6250

20 $50000 $125 $50125



Sensitivity of EOQ


02

( ) h pQD

QTC Q C C C


( ) 1

( ) 2

TC Q Q Q

TC Q Q Q


Sensitivity of EOQ



Sensitivity of EOQ




D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E





D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

Sensitivity of EOQ


02

( ) h pQD

QTC Q C C C


( ) 1

( ) 2

TC Q Q Q

TC Q Q Q


Sensitivity of EOQ



Sensitivity of EOQ




D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E





D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

Sensitivity of EOQ



Sensitivity of EOQ




D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E





D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

Sensitivity of EOQ




D ActualE

D Estimate 02

h p

D CQ

C C

QE

Q

1

2

TC E

TC E





D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29




D E QQ TCTC

200 010 032 174

1000 050 071 106

1500 075 087 101

1800 090 095 100

2000 100 100 100

3000 150 122 102

4000 200 141 106

20000 1000 316 174


Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

Insights from EOQ














All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29








All Units Discount

Unit Price

[Cpi ]


[PBQI]

$5000 0

$4500 500

$4000 1000


All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

All Units Discount



0

2

h pipi pi

C D C C QTC Q C DC

Q

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

All Units Discount

Annual Costs


Do

llar

s

Lot Size

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

All Units Discount

Annual Costs


Do

llar

s

Lot Size


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29


D=2000 Unitsyr

Ch=25

Co=$500



1 Cpi $4000 $4500 $5000

2 PBQ 1000 500 0

3 EOQ[Cpi] 447 421 400

4 Qpi 1000 500 400

5 DCpi $80000 $90000 $100000

6 C0DQpi $1000 $1000 $2500

7 ChCpiQpi2 $5000 $5000 $2500

8 TC[Qpi] $86000 $94812 $105000



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

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Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29



Cost of the Unit




Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

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Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29



Annual Cost

Lot Size



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

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Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29



Index i=3 i=2 i=1

1 Cpi $4000 $4500 $5000

2 PBQi 1000 500 0

3 Fi $7500 $2500 $0

4 EOQ[Cpi] 1789 1033 400

5 Qpi 1789 400

6 Cpe $4419 $5000

7 DCpe $8838457 $100000

8 CoDQpi $55897 $2500

9 (Ch C pe Qpi)2 $988250 $2500

10 TC[Qpi] $9882604 $105000

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

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Slide 14

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Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

One Time Discount


One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

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Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

One Time Discount



Then

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

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Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

One Time Discount

02

g gsp g pg g h pg

Q QTC Q D C Q C C C

D


0

2 2


w


D D Q

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

Slide 12

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Slide 17

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Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

One Time Discount

p pg p wg

pg h pg

C C D C QQ

C C C


One Time Discount





Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

Slide 7

Slide 8

Slide 9

Slide 10

Slide 11

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Slide 28

Slide 29

One Time Discount





Slide 1

Slide 2

Slide 3

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Slide 7

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Slide 29

inventory management ii lot sizing lecture 5 esd.260 fall 2003 caplice

Documents

mit slide

mit inventory

caplice slide

chris caplice

days mit center

transportation logistics

time special mit center

tc function mit center