AMIS 525 logical uneven production situation period CQ = DQ = 1 100 80 2 100 90 3 100 100 4 100 120 Total 400

390

situation 1

lost sales; no storage, no CQ change

production matching demand each period period PQ = SQ = EQ = 1 80 80 0 2 90 90 0 3 100 100 0 4 100 100 0 Total 370 370

situation 2

storage necessary, CQ unchanged

production exceeding demand in anticipation of future demand period PQ = SQ = EQ = 1 90 80 10 2 100 90 20 3 100 100 20 4 100 120 0 Total 390 390

situation 3

storage unnecessary, CQ changed

production equals demand by capacity expansion CQ = period PQ = SQ = EQ = 120 1 80 80 0 120 2 90 90 0 120 3 100 100 0 120 4 120 120 0 Total 390 390 480

1/9/2014

9:29 AM

202046054.xls.ms_office