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  • Demand Rate, D 1000 Setup Cost, K 100 Unit Holding Cost, H 2 Unit Penalty Cost, P 10 Uniform Limits (A, B) 0 100 Tolerance 1E-06

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    IS Aneur
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    The continuous review model calculates the optimal order quantity and reorder point for a product with a demand rate of 1000, setup cost of $100, unit holding cost of $2, and unit penalty cost of $10. The optimal solution is an order quantity of 319.438282 and a reorder point of 93.611234, resulting in a total expected cost of $826.10. The model iteratively calculated the solution over 5 iterations, converging on the optimal values.

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    ch16ContinuousReviewModel_000

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    The continuous review model calculates the optimal order quantity and reorder point for a product with a demand rate of 1000, setup cost of $100, unit holding cost of $2, and unit penalty cost of $10. The optimal solution is an order quantity of 319.438282 and a reorder point of 93.611234, resulting in a total expected cost of $826.10. The model iteratively calculated the solution over 5 iterations, converging on the optimal values.

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    6 views3 pages

    Demand Rate, D 1000 Setup Cost, K 100 Unit Holding Cost, H 2 Unit Penalty Cost, P 10 Uniform Limits (A, B) 0 100 Tolerance 1E-06

    Uploaded by

    IS Aneur
    The continuous review model calculates the optimal order quantity and reorder point for a product with a demand rate of 1000, setup cost of $100, unit holding cost of $2, and unit penalty cost of $10. The optimal solution is an order quantity of 319.438282 and a reorder point of 93.611234, resulting in a total expected cost of $826.10. The model iteratively calculated the solution over 5 iterations, converging on the optimal values.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Continuous Review Model

    Input data:
    Demand rate, D = 1000
    Setup cost, K = 100
    Unit holding cost, h= 2
    Unit penalty cost, p= 10
    Uniform limits(a, b)= 0 100 100
    Tolerance = 1E-06
    Optimum solution:
    Order quantity, y* = 319.438282
    Reorder point, R* = 93.611234
    Total expected cost = 826.10
    Iteratvie calculations:
    Iteration i yi Ri Si
    0 316.227766 0.000000 0.000000
    1 316.227766 93.675445 0.200000
    2 319.374388 93.612512 0.204000
    3 319.437005 93.611260 0.204080
    4 319.438257 93.611235 0.204082
    5 319.438282 93.611234 0.204082
    If needed, add rows ABOVE dashed line, then copy Row 29 into ALL succeeding rows down to the dashed line
    n to the dashed line

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