D 4000 unit/yr

A 5
v 0.04 per unit
r 0.25
h 0.01

a. EOQ 2000
b. T 0.5 TC
c. T 0.25 Q 1000
TC(b) 180
TC(new) 165+4A <= 180
A' 3.75
d 200 per day
v 0.03 per unit
a. carrying rate?
ordering cost?
EOQ 1400 (once a week)
A/h = A/(vr) 4900 --> A/r 147
b. 10,000 cookies for $200
At a usage of 200 per day, 10,000 cookies will last 50 days. Since we don't know what the spoilage factor is, I woul
at the spoilage factor is, I would recommend that Ernie continue to buy the cookies as he is doing now.
quantity unit cost Co 25
0 < Q < 300 10 r 0.26
300 <= Q 9.7 D 2080

a.
Discount Quantity price Q* Modified TC
0 1-299 10 200 200 21320
1 300 - … 9.7 203.0692 300 20727.63 TC*
--> Order quantity = 300

b. if order quantity 500

Q Modified price TC
conssider <500 500 >1.6 should be smaller or equal TC*
--> price <=9.61
quantity unit price
0-999 5 r 0.3
1000-1999 4.9
2000-…. 4.75

item D A
1 10000 25
2 1000 25
3 4000 25
4 130000 25

item 1 price Q* modified TC

0-999 5 577.3502692 577.3502692 50866.0254
1000-1999 4.9 583.2118435 1000 49985
2000-…. 4.75 592.3488778 2000 49050 x
--> order quantity 2000

item 2 price Q* modified TC

0-999 5 182.5741858 182.5741858 5273.861279 x
1000-1999 4.9 184.4277784 1000 5660
2000-…. 4.75 187.3171623 2000 6187.5
--> order quantity 183

item 3 price Q* modified TC

0-999 5 365.1483717 365.1483717 20547.72256
1000-1999 4.9 368.8555568 1000 20435 x
2000-…. 4.75 374.6343246 2000 20475
--> order quantity 1000

item 4 price Q* modified TC

0-999 5 2081.665999 999 654002.5033
1000-1999 4.9 2102.800206 1999 640095.0779
2000-…. 4.75 2135.744252 2135.744252 620543.4356 x
--> order quantity 2136