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  • Case 4

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    HUONG LE TOA LUU
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    The document presents the results of an EOQ (Economic Order Quantity) model with planned shortages. The model was run with annual demand of 3000 units, a setup cost of $200, and unit holding and shortage costs of $20 and $30 respectively. The optimal order quantity calculated was 244.95 units with a maximum inventory level of 189.73 units. The annual setup, holding, and total variable costs were $2,449.49, $2,449.49, and $4,898.98 respectively. When shortages were allowed, the optimal order quantity increased to 316.23 units, with maximum shortages of 126.49 units. The annual setup, holding, shortage, and total

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    The document presents the results of an EOQ (Economic Order Quantity) model with planned shortages. The model was run with annual demand of 3000 units, a setup cost of $200, and unit holding and shortage costs of $20 and $30 respectively. The optimal order quantity calculated was 244.95 units with a maximum inventory level of 189.73 units. The annual setup, holding, and total variable costs were $2,449.49, $2,449.49, and $4,898.98 respectively. When shortages were allowed, the optimal order quantity increased to 316.23 units, with maximum shortages of 126.49 units. The annual setup, holding, shortage, and total

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views1 page

    Case 4

    Uploaded by

    HUONG LE TOA LUU
    The document presents the results of an EOQ (Economic Order Quantity) model with planned shortages. The model was run with annual demand of 3000 units, a setup cost of $200, and unit holding and shortage costs of $20 and $30 respectively. The optimal order quantity calculated was 244.95 units with a maximum inventory level of 189.73 units. The annual setup, holding, and total variable costs were $2,449.49, $2,449.49, and $4,898.98 respectively. When shortages were allowed, the optimal order quantity increased to 316.23 units, with maximum shortages of 126.49 units. The annual setup, holding, shortage, and total

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    A B C D E F G H I J K L M N O P Q R S

    1 EOQ Model with Planned Shortages (Solver Version)


    2
    3 Data Results Range Name Cell
    4 D = 3000 (demand/year) AnnualHoldingCost G7
    5 K = $200 (setup cost) AnnualSetupCost G6
    6 h = $20.00 (unit holding cost) Annual Setup Cost $2,449.49
    7 p= 70 (unit cost) Annual Holding Cost $2,449.49 D C4
    8 h C6
    9 Decision Total Variable Cost $4,898.98 K C5
    10 Q = 244.95 (order quantity) MaxInventoryLevel G4
    11 p C7
    12 Q C10
    13 S C11
    14 TotalVariableCost G9
    15
    16
    17
    18 b
    19 Data
    20 D= 3000 (demand/year) Max Inventory Level 189.73666
    21 K= $200 (setup cost)
    22 h= $20.00 (unit holding cost) Annual Setup Cost1 $1,897.37
    23 p= $ 30.00 (unit shortage cost) Annual Holding Cost1 $1,138.42
    24 Annual Shortage Cost $758.95
    25 Total Variable Cost1 $3,794.73
    26 Q1= 316.22776602 (optimal order quantity)
    27 S= 126.49110641 (optimal maximum shortage)
    28
    29
    30
    31 c
    32
    33
    34
    35
    36

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