har do mantast
on Amel
BEvow Organisation i
‘ sation | foweadx big rhs
"Reep): “sem ‘stock gf, physical daseat fore the punpede 4 .
future affaiiis , called Tnventanyj’, which cae be either 4%
the form — natgitals» ‘machines dhe abowws) '
Prventaoy a “stimply a Abock i physical as sts having—
°
Some. Economie woul te :the 0% fini st ect! Orv
b Srvenitony “Ma Qlaa Knsiwn os usable -buk tdgal nesoferce
of Are origiinisatton «This tan 48 ‘tne Jorn. Y phys
spesounce. such vas paw material tect pro duchs
inthe preduction: proces; Finished phoducks pedi son
: (te the Consiums ¢ “Miman “Resouytes auch
unutiized Laboun en, ancl nesoute . Such.fax wordking
capitals , savings. ete. : ‘en :
eo averitary Mo " :
A mmoael . based onthe conaidecation. of the limarn Aspects of. |
inventory yids the. démand anid “the coast associatedl with the
invent any | ae
, semi- fnil
knowit at, thueate
4 model
_ eee Gontnok 7
Po = . : :
Wa Tre. technique of meinteing the. size. “ol tnventany at. dusined
Pe
i oiet Keeping 0 views the beat economic tntenres!
pec . ‘ ~ %
| Trtgthin words, tnventably contiet i, theméaia by wnich mab |
“ Srigaint signi oT Lbs known. fongeptacy control! a
F . Dewkal "\g the’ goed. or scotrect apatity and... quantity Bs made
+ gyediable: a and when: it th Required, with’ due negara: te t
econamy tn the SPrage: sei cost . ondertng coat “ad de i
maruactunian Cost, | punchaee prita And. working capita ast, :
: t os . 4
‘Scanned ith CamScner3 ves satives_o} “Tovertbany con Conrtwol: | 20!
fain ober ives of Thventany Conlfiol cou s .
©. maintain, the, ovdcalt Shvestrpent” in. taventery ak the,
towest Level consistert, with: the cheating negpiremente.
@Qr Supply the naw mat ona + Sub -c8Sembiieg, Semi =
frished goods . finished fivduca ete te its user a
‘pur thein meyaivements ot sight bine sand at vt ht pri
f@ te keep tnactive , waste, Susrplis, Scrap ana obsolete
viet the minimum deve. |
@, Te minimize holding , replacement and shonge east» of, -
Ctnvahtertes and maximize, the Picieney Ln prodaeckion etn a
© distyibistion. \ om a
Le
| @-Fettrect trven bony a4 investment Which dh. jeisky “Pon
Sometimes —thyutments yew bead te Nghe “Rebar and
for thew: dese” nehuena -
[vse of Tertiary, Conta bod
St helps’ in 'SAVcolh and Trceat munning gf. ee sesh
$t- Provides y qdequste ‘suwier be eesbmens!
“ 9t preduce the possibility 9) chuplicatin of ondans :
et “amp yeovel” the Gath Yass “hy Liniery Ahi pment 9 custom
2 OFtdLs +
haps tn maintain cota ‘abdanb Aame .
Bu fuactuatims who, ‘dcenunel iz aie hem athe:
at haps an minimieing Hic Lose ae, tea Soe eaamaee
Obacteeene | damayie ke. . gt
ads os a buue afock Whur Wau oak yibabe “ane
ae dake and- shop, Ageckien’ ane, t20 many.”
TRA gives the onganisaligy,| fathe see F pric a
diswurts by bulls as nee bt 7
; SC aie of
9b medica the coat of. predic!
aavintage of batching . tong uninkabupted production
; pe cbpxove Fhe rh spow sss, equifrrent and batlity
© oun by. betes Frlmen li and: I Adiedaing :
ae
‘Scanned with CamScenerCohwt rel i. Dts
"Ongantantein hy’ an’ ripact. on
mye Meany factors which. car pet og
si thote: eu thee baste
on he taker :., : ee
D. hat (te the, “obptimedl queatity oan item, Cinvente > thet 4
Should | be enaddced. 2 : , i .
1D) When sheuld the os be placed 2! :
SOD" Hew much Saftey s
; d
VV ations “Packie elated
© Ihvents
k Chufjor seek) should be” kept :?
with Thee decésiont ‘asa s
Werte ate : : ;
Vertous Cost associated fotih_inventang eu & obten, classt -
~ Fed as fottous oy i .
> Set-uprtost . my \ne west assoctated wilh the sebtiig HM
up Sf machinenter belore Skanting proddikiorr .. Scteug ae
“generally assunied te be dhidepindent of the qnottly ondated
“fox Or preduued ch purshaled ope |
Go Ordering Gat TR dhe Goat qvvodated wth onuetiyg
raw matouat _ poh prodiclion . purpesc , 4 veurigem enty
. Sraiumptien | of Stationary. ath watage , telephone char °
tdegroma , ment Jor. spacd wea
cdnew dling “expendihare
cat. This
by the purchasing dipantment, f
te. wont hte the ondvcing
Pre earement teat on §
Ancunned
wh alse know as
iahment cist.
aoe a 7 \
Browghase: Cost / Praduictian Cost «
AE /Sieaduichuan Cos!
On “Pmodacit
1
'
The uxt ci (purchasing
unit of am atin “te \Knowmn ar /pusdhicen ‘ai?!
The Pox
On. When ecen amber: gf edly auggat that,
AE Production tort” Can ‘be jeclicce a Longer»
ook 88 pices ces wate
hun. ; i : i
Suing “CHelding) Cost’ The
“On Holding tovento,
my __intPudes
: cat eassotated sai tr Scantiyiny
iy ts Cattle 1 dass tg (Holwing) Gat. This
he cons Bach” ah Bary uded fo% storage
Beeer a See
‘Scanned wth CamSeeer} iy et ah inewiama. of “adorned
ents. production’, x g
: ae Lo faxes depned vabien #. Aagpment cari'd, :
ate 4
Sheittage (Stock out) cutis The “Penalty coat: Jorn i
“Ranning out of Stok te Ahe item |b nol “supped when-
OL. the customes ‘demand fou ik 4. Known as shortage
coat : os eo
. C1 Shortage Cort :
ae
Manujactuun, * .
Side. “.
Coat of ol BTC. leat
Bake we hak * | qa — Gm Saks
etl oe Cones
a8,
“Tae s Frctudes the: doit a producliq:
overtime or ..
| kale tine payyme «Spade brduu 5 price, tle. _
machine , Jess of AAT, ax pects ko AdL, ders
i ‘
7s prapitobility : for iment foe" ee
> | Salvage Const € Settin ‘Pate | then, cobain Common
rally ds cafect:d by gpantihy sitfek, deetsion| problem ii’ based
OF A projit ama nimixckken chrekanife whith includes iy nevenie
msm that Sdliny the commadi
Salvage Coat (valued amay be wh reel. asith the wast = se
and hence sprvially. neguecte, \
iS Revenue Goat> iohut it id} aisumed, that both sthe-pates
{
| ‘and. the .demand' of, the prodict Gite ot ‘undue conteol
the orgamisabion , the: nerds, puny) the sales “Le uindependent
Lf Are ceinpamier inventeyy foley: ind may. be mnegledbeil:=
exerptapon thi situalcon Sun “thy geet st Tse mak
ameel the’ demand and the!jele i bat
5 Tog. the Hevenue wat nag. Ot my not be, ‘ndu did oh
the
Hy B Bwenbony pling
‘Scanned with CamScenerlo untes Mumbo uniba: | Bouton veqpdnadl? $s
boy. Bh onpumisabon ia kMowh ar dtmend, of) tnve ot
rand Moy cithy. be mon- exactly dn in tums, of pre bib
HI es demand fan tne thon may be! Kiowa” Gait Celaihihy
Me giv by Sema” proloability dently. Ana than seo may ben |
ahied “Heapectivelyi™eS, of Delgmintalie ow Probabitiabic Derpian
A Deterministic.” Oymand may be cabied state shen” “he
P Comaumption ate \emutni: onstant satth time. and may ‘be-
CMe cnamie aahlm “pie demand Wo heGon with, conketnity «
Buk verte itth the tim S
Roce ~ ONL D.tounintate: :
LS
ME tndepeasion — shit ; , dhol tne
| ae: tne So mle. ss, 60, 78To! se, -
‘i
1 Stmilestey Simple, inventory model. ' :
‘ chimand. | {wney be, lyened -aa | Stationosy when
ae c nobébiiy jp fuinckore nemaing : unelrange,
a
nd, Nie = a a as adn - stchiondiny ‘W When thee demaile 4 dl
D Ralb bab ity” aemaity Sade ath |lime, © —
Prcbiteste| |
ifiMtic Demea
ipa bre, | Prabal tit Reman
i" » Btechuemany Sy i wy
. Ama ain wilh “limes Atfeunt Prctribution, 2
Ailes ales [= Ye Pome: Poisson,
Bi
‘ an Liabredain J rornt al, expenintral: dint!
hs ‘ 4) Gmplen Inventory wrvclely, : :
, Thuintory “Problems cn achich idimand “& Kndlon and fined wu |
Mp catud datoontntate, Prion. {log inet’ Spl Tinvcitoyy: Mectaad\h
Le whiter the Preble ies eshich cl esuniailendurnel te be a random
Noriabl.” aor filed
ae Pree prebter (er Complex Crvertoy
» Met oe fs Deleon hae
‘Scanned with CamScener|
|
"> ® Deliveiy L 29 on Lead ttm imi: “|
: Diedin, Cycle : oo | :
fod. belween Placement 3 tudo Guceasve ofits
4 known Won Shave tye + Tht jordin g 0
jp be “plated. on: the
5 “Y, following © Bap neta
las ye ema (onppecn Ayshern
8 Mentinusui Review "Gn thes cahe, witb an genta “heval-eny
eve
Coiinaistiny Greak pte a speuigtca tbe , called Ker ovidur
pony Frwhen’ a PEO Tondo. HM, placed:
“Gi Potodtc . Review = ah ann cane’, dhe! ay very devil. one
A —————
Check ed- and
‘henge oe Plated ack! cee cyte Aniovala ey
time. 3 | S
Th _tims “belive: Placing
Seal oival on tne
¢ Aggron dead time. 9
Nandy administrative dea
—trirabortatier, dpad | time ‘ anspeetvon |
it Hiabative ong Enspectson, Lead simi
maioge: fout Supplion tead time and ‘trehsboldation Jad time en
mg be + datvomanivatte On Pitobabibestic: ead dim.
e* Time Horio y |
The time pouoa _ foity Te te be cond Naat!
(called Sime hort = TA Powou may be din inite’
®. Stock Rebilenishment ¢ an | apbcement
Th bate “at aghich: them’ ane
Caled Stok rupleanishment ratte,
‘ ikea
sf: “en Gydlon oF ah “item and tk
cam be diced tn
added be. Injen: Le
+ The aduel” Fup lena ment.
ay ctw ok’ ae am uniform + rate, doe nitantenbous
‘Uniform, eatin. of Suple ridhmum LOeqaAK oN
‘heaBa on ue sens Manufacliored ~ Lotthin, lite on organi sabion,
shale Anstambameoud Sep bomia hnwint ee than) the, Hema ane
Pwrichared, Pom Aare Pasi fine :
a
4
‘Scanned wth CamScenerAwd between mazimum and tetnimurn stock at uthich
Mtchasing oh. ames acini ng ctivities musk stant fer
ep doniabimunt devknewn as Rt- Onder Level. :
Re- Onder Quantity : | |
2 3h aptittaty “ef uplestahmest onde s-98 codtate”
teu eooneme andi quantity Ceoay, 0 0s?
Guants},): * ; Le
nl imoatly produced of preasaed
oS preduckor cucde on
Oncin Quantity on tlom Size.
the Ailton - por time “purtod ts
Evrrémic Mote Size! om E08
ds thal size (Trey. G indie whi
eof canying inventory and ond
Thi -hote size fon which
abinimam
Thus,
ds, Kosar ap,
Eo
Ain. a pre ductim prccems, “phe est of campers
iautana eed and the est S
» Athen at.) aunts opposite
pe exe dhouant tne “ett of onduing’. -
decwans. whuuate pa inwant ony ‘casuping cert will thowasn .
[Runs the mintthum total Gt, cco ak @ point collect Cow ,.>-1 |
“Shae sOredasing WAL ane. Aoventony canuping cat ot eqpiat | “y |
: “He “af “inthe ( oFduad : i
ig
‘Scanned with CamScenervent 0} tom may findaecl tnvelve” ont on nuove errs
r Maite "Generaliy, an thuentory syste nvelvd
MORE than ore them. TRL number of tkums held in! trvertteny
Cee thi AShuation hun true hima Combate, fox atenibed: =
Spaceron dumited solal capital : an ,
® Nox of Supphy Echlons :
Pn. thventony . systom’ may: clnsisth gf seioral ‘stodsings: point
or. places + gh ‘sore Newies, “givens posiris oi poldvcts ene organiec cl
such that one ‘poi adk aA a ae Aoywrce gor othurk +.
TRA tybe & opuiation may ibe rapdahd of diYount Love's
each bol” le cold an gehen, Ghd! ike. aibuetion LL aefored
las multiechten systern ' . fe ‘
Foe ees a situdon shoivs multfechion “Sythe. va
|
|
|
coe L nr ae 4
a aS | RTE a |
P[Fadteny|\ao a pam, a [aaron
, Ss Waraheun 2; . [Retail 3} . [Castonas}
= iDisk robuby 2 < *
® Rima ¢ St
thon fart ou stoke un gm he aeap
pre es ovoceha , thal: “are called tpsptiptags niente.
® Avotlabilty of Temes! we
“Somes ~ Supply postion is badiy qfut dire Lo, Vario
manker situations whith’ also ojuds the, Anventory positon
ah am oxgamisation 4 . , * ;
i : nies one Spb
mont than gna “Stages dn the seqjentjat
‘Scanned ith CamScenerseipatio. -of Te ventory Modul ;
-"° [Srventony Modal |
inventory, Modal |
Methodology of _ Eventos Medals = ; a
The -metheSotigy F ring Canvastenp situckion. ix based
Ondtint alt chataetensted |
Tuduen + .
Pree canneriers
Cat.
( Crplining
se) (Sh
- : Ondur
(Phi. Parsative som equalion 104 Lctak annie:
dogie "sf mathmchu on matheiedicat. equation:
s Me cat: egyahiam | by temuuing the ebtinum Jom,
ondyr- jie pbidy ye Tie males plat Land | i> Jeltivant cast.
if Lived: «
Re
- Tt sean af
i Spee
‘Scanned with CamSeenerBstuminictre Touintoky Medi + ins el
yuu modedy) “oll the Poramedoy ou knew uate!
hy: ter dumand ay " Caomumned3 kd be fred and’
ay pre ditiamined. Chnewn) . These’ roddla an ivebiay
+ f08 Modula Thine models are develep eet far aor |
eANuation cs it ty Fextnendy Yi ult to pavclep a
inventony rmodul
E08 mod wilt “Unifosum dumand.
Fod madd with difuumt rake oof dumand.s
CReplenishment Trukankemeous) .
E08 modd svith Whur phortaget ont allowed
E08 wodet “isith: uniform san
(Reptmishmuat ia “nok Tne Ambamoud),
> Phetce: Discount Thventaiiy “Modet Modket :
F°EO@ modu Ash one pnice Bhuek,
60:0 modu with toon puic if ii
E08 rhedi with ‘n= fouw ie oe
+1: ondow placed pec ee :
“units andwud on supplied pur ord
Demand in upale of ¢ inventory Poe
| puschase on (ett por unit” of “witeg
Coys, Conk pur oredlye | /
Ce i 1g Or, Hlaing. cost, put -untt ree:
qe anfentory
toa weeks on. months)
| Bigs Repleushment!: ‘yea, _ af Tot site. Oy
t to the init :
oe
‘Seamed ith CamSeenerx atime: betieen Placement 5 koe
A expressed a a
-ortzen
(Muccemive oan wWhin
fosoniat 4 fant of dtandand fpr
C=
Total ventory Coat
A Mod a aufero andar the foloamng amumplions)” °
bacdiony 2
* Level “ai dime. la Zen,
> arian
Gost (Procnnnet Cat ! Replenishment Gest)
SG oe Net otbewed Sotich mp Mer thet shortage i
cot is very = very, i or Oypnite.
ew TReblenuithmrent Ret Ly snstantameous
Re th thus asi Hors «a gneph_f inventory ayant time
PA be a agulan jas “teeth pattem! |
Time Perted =
Magstime”” oo oi
Q = Maximum Level of Thventow |
Pinage Trending dusery age
‘Scanned with CamScner4 "Teal .Reivent Crt equation Jor this Hh given bys |,
eT VY. Annual ® amma Finnaol — *
6 Arava f= Punch FF Oytaeein: Coron
Cott pres cat i Gout 3
Cte) “CP.c> Cot) = Cee)
Wo thaky 1 a
He Men ef Ondans. pur goon CAL, = Geese Semmand: Bo
a : Sew . Quantity
& ‘Arnuad.-Parchare Got (PC) = (Prive pos unit) x (Kee)
ert Pe! cxd = ep - Fi ao 2. _.
“1 5 tack (ox)'= [ Hit J oxdouig\y (Bet
&. Annual ondoung cect (0-0) a ondee@ erase
. . 1
Ethie modu: Aha Verto Levels 4
Hows te | |
* Mthinum Lev o} Tnventony (Sep tey Stok T Buy or Shock) =O;
%._Mactrmum § Level yf’ Taventoy : .
dnvert bug Pon qua:
= Saftey Stok + E0G@ |= O40 = 8
ye
* Firs ge Lnvent oy “dining one Yhin $lora = a"
| (Hou Leycle = sone year > oe Ge maith)
pow yea,
yy -
bee
foruct soa a (ee .
= Hx
‘ ‘ = 5 \
Gabess lhe bokad relent ost equation ‘Besa
‘Scanned with CamScenera Tee PG tr OG OS.
OF Tee OD GD Ga
ie STS ‘
Bs cconomic ondur quantity (£09) om oftininl ondvel
phe qpanlity thin minmize athe dat eat URS
Bis total ytost CT) Ly the Aum
o} xed edt ond vail
Re
and (
1-3 otentiating equatiam © wrt @ ond
Zero - ge mMinmim Te | mo -
; Te = 6D GP 4 OB —
2
ab gelrore oe (= ER) + =o
a8 a
# TR, shy ghamal ondur sie Eo’) =8* = [EBe.
i ; - Ga
* Hou, +8 = VoHtablis quantiy j , cs
“el OF = Goes fired yantity
Fe The Ge powed () = gitiimal onde Quantity |
i ees ‘Annual Oemane
Se de ge. Oh Lee. fae
- Da BY a a
oe 5
A apie alae’ te: gf endow (nth. Be
$ Tetat Saninyr. Gest (oy Minimum value of Tout tat)
a eh s CED QDs 2hy :
f + & 2
or Te = Cpe [204% |
‘Scanned ith CamSeemer(Bo
‘Demand
1 A :
| ren ci lses Bur Iq.090 Worth of am’,
shee Hors He has. edlimated othe ordlening
; Orde and” Ceucin ot easy %y
: 1 eihag Anventony yan Find bh opt onda size,
- 3.
sae Pe + ers time burted pe ordi and
Scdien Giun, * . —
TF Ahned Oemand.! "(DY = RL 10, 006/. .
. © 7 25].
ang
= bs hp He Sroiags Pte Vou (as)
RLS be sine Ondun side th Ruheis . wey 5
Aurrage Fnuentony Vale =" go
= 258 2 se
Ges pet nae S| 8
prise 2090
hs ee "
ioe. "gt Fe or = pa 2000 orate
A DP ag alee
aa S ; oa
3 Ondavs i gun by a°
3 eo
s Tess SS Ode ber yeain
Thosdene, total mmimura tts
2 : - fas 6 an wet givers
*) Yeasce t: Tale oxo
‘Scanned wth CamSesnera aneet 9 ce,
Bronk) + fin cap! aa wae ok a. unit. Deabs, of TR OR
ails pow Yron do tho stage. A odjowed, , and J cleo
a Praha Unpintke yeate 6 -The ondoung, neacesdnig + “atnod
Ing (holding) CotY i RA 1B par ond udhiles eel Hp
Beton \cuyt mq far 9 por ‘ondun , Trteunt! cosky (Pe ‘odogi6 Nf
Bd. dotuxon alion and sbsojamceGtta ov0o4 raat:
fe yoo, or each: iim ecually Sad (ans trenton pple. of
, Hieox" “pow yea. bor unit. bared én the monet! ‘nobepees
untda dn anventiy + Calusdete Yh B09 4 dig oft A
Bee days « Aluc. dind ta’ Mer dnd tend. - ie ode dal
* Chive
D2 5ei0c0 units ‘por y ean
Se * RUA) = By ea Por oncun
Cy Ree (0-05¢-re-0dy + 2 (0-079)
= Rael
j Let 8 be he onde 6% in 0 | Reece Then,
ar ee Sie 4 50aq ‘unite
B Also;
L sdead tim = Podayh hu vey
i a F
= Re-osucln hed = LO = gee x 5B,900 .
‘Scanned with CamScemer(en le
|S RRNRION O
sn
ay® ; model,
. TOD E ie Moe oa, tutte iow
Muth model, alt
Brceph Hat
AMUmpH OM, ane
demanel sate t unitonen «
Hove. tie Jomand duet’
be” AY bert ane
Aujtangn b Proddatron —yuchy foo, YA. Hovscre: te totes
{ = : 9
sumed Oboe, Sal Meal asi g, sor, tang Vann poued OTD,
1 NBR dee ,
to S84 demad Hate te Abe All Yardah Bf
At Uy ennt sy eles a
p
ine
ome oA Wh grodid~ 2.
ae assumed ky
Leb the demond in AMyjorent Die
8 MU pect vely
total demand 9° Lineyit at
De Disdye es ity,
Graphically, this mod can be ahown ar bee uith a.
fay of axdoun Same oan
stl for Hefden'ah munt 4
intventony bea. °
BDL. D,
Potods thy ee. tthe”
Soule
bas mot ty de" ee
ty ty
+. 8 Thine “Powtod CH) —
Jour the cost of Obedoung an hime To isto
Onde Git Ge xB ’
arin, Ga ondosng oat ber wert order
2 = no 4 ont onde. iy
t
Fe Cavryng coat an dime Toy | ;
7 Caonging ee eee ee
_ 2
.. Onegin et.
a
‘Scanned with CamScener“aor y= hélding COE for unit |
: 2 1
Go = 8 [tithe tyes oh]
= One
SB t
I,
Teta Reawant tant in tamed a yen tyes
Lote = 00 oh S th BF eek hosel
pre eo eee ie
1
cect vaxtable Cott
“Ths. ctotal coat: i. Minium ays
GP. Git. ‘
@ ek -
ao ge PS fee® 2 fae 2 —
ok CRT oT .
Dit Pet 22 DE
“Brite ttn _
Rate that hor: Be jy "an “wwaage~ dationd, an 5 bert
Dime poets trrts — =. ta
TR recede i Bintlan “to tke punatt *ektamncd | an twoeld ~ ol
psit, only Sitpeunie that Uniform Armando, ae og Ga
aomage dimen doef Be
Bn hin cane. doteZ minimum cask CT-o8) te glum bys
“Cpe faacar
o Then, the “puis of this medal te reclucedl: to that mnt
modal= T... : Ts
vith Camsesanerraga TL: E0@ ried with ashen Shosdagu osu allowed
besuinpt iora 4 thin rind au als dame as thet of
Modil~ re except that Ahorbasts duu allow and ‘short
Ocous » Hore Leoet shortage. du assume te
be dipetay, breperdtoral, 2 ‘nd. number of ent phon. -
ot . re
4
Wha. droduckion | Supply is initantancaw th can be « depleted
4
graptcally as below #:
“tm fered brie :
ae “by & tq arm nok fered. me tS
Hore, ABC riprescnt, the ariventony and. seer apresen is!
tre: shorcheiger « % Zoe the invenboey deve: tho S act a
. Shasebge’ devel. -
Aldo so, cy te poded hk tebe - -.
whoa, dk the dime fo holding “the -chwentony. and t, ti
the tims of shont-out . LE & be the onde stu Quek
thot Qe Its - . =
Gatin Case: Naxtous Frventonyy! wort, cose yen &
He “Ontsan “test a oe
ee Aviagi Tyucntongj © ‘Eon’
2
(sina, Q-3 & TH masini aruenkiny deel. 2
‘Scanned ith CamScenerSinees - BABS and: -OSADE ang similar,
feed |
a '
a s—\ . PG
“SC = GinSaty 2 as Sey 4
Since & BADE amy Bpee abe sina
1
: ‘Bee. _ a Se
eee PUR Se
“re St. 7% Eg ;
_ . SC Faint tee, 2 om : |
qe Teted est C Annial: Rdorint Gat)
Ade 5 saan
PHeuntiating: @s, wrk \E ahd | agen wart. aes
Q: and 4 eeqeatinng the. egpation Fo. Zero.
BOO: Oe OF ue ea (@ (482) «
2GT 4 8aca-n :
“eet aan
* Ses (Q'SE) sstagy z
‘Scanned ith CamScener
Sergiy ae eee oe & Sty ad
> COPE) (GH oo)
} i ra . “(3 me oe yo) fi
The optimum, uae pt Q:and I ant cbbained iby ce
i
|
|Babe pity. Q, wt hax,
ae) (Crk) Tue oO.
2 Toe Ga lo: to
5 tag Chats
°
ge (TO = ; ers =) :
: a so
2. o= -%D Ch 2
: 42 - SE +
Q Qe
o= - GP _@r
i RT
: :
% rdemattrart tg /
| a> ~F /
Pog a a
‘ 2a + an
‘Scanned ith CamSceneroye. bowed » st :
ce ey "sf
Rumbo of -gmcte fos cycle posted
*e Locer B.
iS or) ie
Prd, Un minimum fetal Cost:
= Qt
E Example:@: The’ Demand -
A (9,000 unit “poi yean - THe, onawiing,
Thvin ce ng i Change iu Q0 exc
neni po ea seat tnt 4 Re 4 be omit 2
siege sneamned «Tina ing:
Optimuni* raobihye on dun .
ea optimum Stontage tel
Gi Splimum | tmvenhiy oman biel .
— @ Sptimum. joe pudd.! oe, . .
©" Mihimum? “Basta” east
0,000 vile t
~ : = P lo/- ia ‘ego
: 2 ay gory, “Ay a wcinha se a al an
= meng eth Te tis on an |
eo 4 ee |
a. GS) > ae
peas = 10eae unis:
»
Be
‘Scanned ith CamSeenerTes ene prec [ir
=z)
=f Yoe-4}.
MoveL-v :
~/
E0Q mdddl with uoifeny
REL E08 mod astth un plenishment
Qn TR model, anuesptionn ou Achim «1 That aoe
'CLeept hak the Replervshrient note is not nstentamous +
| Mir sondie Size te taken of Hedin Bite The emmuct
Produiction nate iy taken as Pf) fon at ncpherushrnent Rak °
pe unit time) dich that the prpduction Le geben than
‘demand CRY D) othe (fe PED) te ahem: anil be
Used er fart ar. it is pioducedt - a oe
Ths gush - depichny. naa omens gonial and Nealishe Sfuchin
da ab shown below >
‘Scanned with CamSeemer~ oa
be the time fy brtduction: pum oh tang shore gon
flenidhment Cxeplacement) fana ty be the tme Aeqpired for
Wor > be exhrauiticl °. ‘ a
an Phi ease. time’ for, each ond “cycle # Agen ly |
Sb etytty | f : ff . :
' fo I ee
feint A and! stops at point & asaom |
deve bewme ge dushidh | the, IraXimum
ventory Lever, 94 8 be the murntey of ubite produced’ for.
oxdax eles Tun Ave
teh
- F
Contam eck.
Shas have:, a ‘
shou C= Nef Um prodiscad por eget q
. P= Procducken Rete
(since, Hime fon Prodiichich! of teas lunit = 4s)
BONA ce time, t= a
| nde Bee, S
Ren, ot
Tavent ong de “buiktup C9) at tae Kate .
ingeke: , maximum Bivertony dev’ BE "Le gierrby «
_ TD BBS Cosy, (pb) &
and
: Minimum invert
Awd =o
* Aumage. Eoventony Level 2 (eBags. = 2 (22)
xy
) ak any time
Tre “annical ondonng sil Oe) ano .
06 =.-GD. :|
= eo . we |
s ‘ Ainuct Carmying:' Coat eo : Ge a
° poe Ge fy : i
Teta Aonsol coi (aey-z '
sis TE = cb +) GD. 3 "Ge
ASS = Se.
oe, PRell! Sa
‘Scanned ith CamSceneriplch u Known. aa. Beeriornte
Oltbe” Charadhnishia oe
wo Te* = cee [366 (§)p aa ,
+ an Fees a produiton run, per i yg (pos or pean)”
PRR
Optimum time q " pean juin,
the ot fee :
re oor
Exampi ©: A: product Be prolieed forthe Hab ims dem,
_ bev—doy the demand occu. ab, Th, Sek. 45 20 item. po!
oe Given. that. the. sekap/touk fon wordy es Ri Jogo and
holding coat pur aunit time: 4 Re. '0v05° Fina the Boiron.
Let size and the assodated'.: total. wat rie gp gagtiming -
hat no- Shortage JA allows. : . . =
and. Demand jbelh au geen aloe p70)
. 30) medit TZ ac co
De Be] unit pur doy 4
“P= SB unit fee doy :
© =P Taco: por -Guaey
2 GR o%0s bu unit Tim,
Te find B0Q te. cQha De |
cr “rand Ee 2
16 Papa Quanthy CEPay
(lo) & a0 not Wie 1 So, un ‘cam Ippon it?
‘Scanned ith CamSeenerFempl=@ +
De
2 Gs
0
19000. paper coins Pom day
t = 1782 ub.
“Te . [Rew (Bye + [Reese BED G0)
Gowwo xe02 =, fitao
Sug
A. “Contrvactey “has
wr day to a textile. init.
edudion.” urn he can
Re ia /-
Wepind + +1 ond Q*
ihe, Ohne BS |
B
= P = Qrou0m
Gs Pa., gion py day a an
LOSeO VFS
7 Sond
~ [Revere
Stoves IE
¥ Ges) [t=
ov ecso
to Supply locos paper cone tH
He fond hak when he startive |
reduce 35009 papuy Conu “pur day: fi
RMe cout of holding’ & Pepa an in The thetk for oLyton
BPS 2 PTET and the set-up dost Cy produchion shiny us Mee
How, frequently. Should production juin be rhode?
= I TeaF xo _
DES 1 OYG92. pater leony
Biyeeeg
7 Sooese ‘ ;
Vase
|
‘Scanned with CamSeener
\
ie rege 5 i ON
: iP ar [5 . Ree Gae; \ * ¥. j j
Discount Mod -Lmodu with Peter: Breakin eG
“When: thins ant purchased. an buik “quantity Rien the i
“Supppew genowlly mk discount That any tuto was
-offéiting ete discounts by the, suppliow oe
O When “discount” is. givin “Yon ail te “wat hovancied
pris Rrown os ain~unih discount: The yeate op dis
distount dilumdi om the. Size ef onelue, :
© When atscount?” gion on’ exba iia” pubertal
© Cf dome Abecitied ints. gt x’ knetan a -thowementae
discount .
Tete discounts alee ine
nici. Breaks. We Shalt
Gn the Invent’ Mockts aiseun Ao Joh, Tu production i
Or piltchan oil fur unit wd assutréd to be qonstant-
But whyn discounts hi -offened by thy Supplier for the 5
Petters of Lerige quantities on bay qpicntihen. Then Pe
—preslion ox fucking tats" Ytiohle ‘anne debunde,
Gpen the auemntity jectused:/ on
Thun, discount rake the jonni of/Frrice -breaks»
For eg: The price breaks may fe grun as i zB
Ret pur them: purthan af /them “inp loo” °
Re o4s - per em “purchan/ ef itm ubte sooo 4
Re 0°90 Por -itum Purcha qf thm upts mor then leac!
un chased.
an other words, the per dint cert a “stg
G7 Y the orden quantity .. 4 bers: then Q1- :
i e He odin quality Ja gtleast Oy but lew than
a Y the ondur) quarrtity a Oy o> Longer.
1 H Wes, : i
cease Jeo 4 Jalen S
. | 4 OO If Sou, oS
Hews GxQ8G) od the powdhon Mad varying
Bo ee
‘Scanned ith CamSceners...ltttt eee eateries lien ie
not conthusqe but disentinusus at Gand
Oa. amd’ minnnwm .,dstal cor! May Occur ct ory ene Ytrneg
Epolnts (point of dis continuity -on—B tak pérnt) aut teraudalem |
Atop” of ont rele tem ec thc pomb
price bnedhs: |,
When ever. _usanhity: discounts: are available in case PT pucthaoe'f
thorma stain bee. pen, unit imey vary an follows:
Suanhity purcherd
ocd ch,
by Sha
by ew 'S hg
)
Spr bay OF bry © On
iii beret, SLAY The price ba pri jn Tre ft bot Esa
amd alto yi < by
“¥ the shenbyges anu [net ellowed tien . the “total i por, yne
‘Scanned ith CamScenerwhe Ga cob «and ty £ thy ae
and da Ceca range an changes uated aos
1- Chelting Changes)
Notte, hore that, the price on unit wat wanes vith size,
BBehase quantity!’ 8°. Thus. tne piped wat Kom “(ee befome
Variable tn TC and ‘hence canriot be dgnomed: 2shiletninim
ing “the. total coat.
Fon fending the obbimafa punches seat and Thintnitn
dead cae gollowsng “sktbs cou ablopked +
cae ae EoA Jon the Lowaf price ce. os ra
QD 2GD. eo aie
Ie “T pnt :
“ye Qe S bn, then’ ophmum aniloe pusch quantity is OF
|. Othonision (ier YY By <-bny ) # tam, Oh Zs not Bo@ ‘and!
shina go. 4o next skp- _ Ps
a Ginpute E08 Jon Haerent” ons eee.
Sha
$8] Gh & bra, then compan the “Total cout Jor. punchaxing
"Oh quantity with the total eat Jor bru qaamtity. ce
Compa ToC dni) 4, TS bri),
and deck the rminimans” FE Pusch ate aiianbity +
But gq Opa "ual thonvbner Thom go torehp IT
(SkpZTL! compute 608 for te ext bout price
iste
ay bra ® bris dm “toms the tata: cate td fs aah
qzanbtigs “@R, obna and bry fe mba
Te-( aha) 7 Fobra) + TeLbns) |
anal euzcr th punihionn “pean ty ger, Whi ie de, mininwne *
‘Scanned ith CamSeenerSTORY bag, then. gots ship oE-
Gontinue, an this, manner until ave hae
“bE ZS bn. yids Pd og jenn
Example: Fira the \ pinay ondr dentiy dor onpredicct
Yor whe the fide break ane saa forllewen = =
Unit Cost (Ra)
“oro
aaa
oo Tee ehh “dumana yt “prodiut ke ~ Qos units - » Th ait of.
: Storiagi a! Pay. oy the unit “Gost amd the ont operaiang
a fas B50: wh : wt
Solution. Given “that, D+ 260%, unibs
: Gx ROBSON
oe GE agi gh ek cat,
Wee be the unt est 7
(G28 2852!
10s a
+ Als. bee ao, “and by= le-ée as Gees
‘Scanned with CamScenerAlas, TG (bs) ~ R170 + ape ew an
Modu! aasth sidewpaigh Galax + Way
eee hn two =
“Exemmble! Fmd the optima. obtdun Ey dora + pic
dertatheds the bute break ene at Jolloun
Quantity, Poscbase: Cost (Ra)!
I" 0-€-0, € 190 = by Qo pur unit +
lef € as < Bea eb Te por unit = py
yn Reo s Oy
16 por unt =,
Te month, dumamd for the product 4 49 “unites Thy
Stonags ost 2° Yo
74 The unit cat of the purchase “and?
he vost of ondamg Re 2 per menth. |
Solutions Gien net
D =~ Goo unrty
G@ =.Re 85 bor ment eee
PEGs 20% gf bor ut cot
Gudou)
2 Og
= [PERO Lagu SF
Voto,
So. go to skp @ :
REP» f2tasrwoo fy hg ue . :
Lae
Sine, ot