Learn How to Find Optimal Inventory Levels. Operations Management Help




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Q=2DSH=2×15,000×820.40=2,479.9192,480
Demand rate, D

15000

Setup cost, S

82

0.4

Unit Price, P

40

41.09589041

2479.919354

2479.919354

1239.959677

6.048583789

Holding cost

$495.98

Setup cost

$495.98

Unit costs

$600,000.00

$600,991.97

Reorder Point

0


TC=DQS+Q2H=495.98
TC=DQS+Q2H=1430
Demand rate, D

5700

Setup cost, S

500

0.4

78

22.8

Unit price, P

48

4487.301

3175.628

1587.814

1.270251

Holding cost

635.1257

Setup cost

635.1257

Unit costs

273600

274870.3


Q=2DSH(1DP)=2×5,700×5000.4(15700195×100)=4,487.301

.