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Inventory Management [ these topic may be included i am not sure: ABC Analysis,EOQ model,Production Order Quantity model,Quantity Discount model]
Inventory Management [ these topic may be included i am not sure: ABC Analysis,EOQ model,Production Order Quantity model,Quantity Discount model]
Need to find which option is better. To buy? or To make?
D= Annual demand
d= Daily demand
H= holding cost per unit per year
S=Ordering cost, or it could be set up cost
Q= Order size
Q*=Optimal order size
Total cost = OC+HC+PC
OC= (D/Q*)S, HC = (Q*/2)H, HC= (I*/2)H, PC = (D)(P), D= F+(V)(D)
D= 100,000, d=? ,
working days = 250
H=$50
S1=S2=$20
A)P= 500 units per day
Fixed cost= 50,000, variable cost=100
B)Price =100
