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1、Chapter11:ManagingEconomiesofScaleintheSupplyChain:CycleInventoryExerciseSolutions1.Theeconomicorderquantityisgivenby.Inthisproblem:D=109,500(i.e.,300units/daymultipliedby365days/year)S=$1000/orderH=hC=(0.2)(500)=$100/unit/yearSo,theEOQvalueis1480units
2、andthetotalyearlycostis$147,986ThecycleinventoryvalueisEOQ/2=1480/2=740Worksheet11.1providesthesolutiontothisproblem.2.(a)Iftheorderquantityis100thenthenumberofordersplacedinayearare:D/Q=109500/100=1095.So,1095ordersareplacedeachyearatacostof$1000/orde
3、r.Thus,thetotalordercostis$1,095,000.Cycleinventory=Q/2=100/2=50andtheannualinventorycostis(50)(0.2)(500)=$5,000(b)Ifaloadof100unitshastobeoptimalthencorrespondingordercostcanbecomputedbyusingthefollowingexpression:Thisanalysisisshowninworksheet11-2.3.
4、(a)Wefirstconsiderthecaseoforderingseparately:ForsupplierA:Orderquantity(Q)==4,472units/order12Totalcost=ordercost+holdingcost=(20000/4472)(500)+(4472/2)(0.2)(5)=$4,472Similarly,forsuppliersBandCtheorderquantitiesare1768and949andtheassociatedtotalcosts
5、are$1,414and$949,respectively.So,thetotalcostis$6,835(b)Inusingcompleteaggregation,weevaluatetheorderfrequency(n*)asfollows:So,n*ofthecaseis=S*=400+3(100)=$700So,n*==4orders/yearForsupplierA:Q=D/n=20000/4=5000units/orderTotalcost=ordercost+holdingcost=
6、4(500)+(5000/2)(0.2)(5)=$4,500Similarly,forsuppliersBandCtheorderquantitiesare625and225andtheassociatedtotalcostsare$650and$513,respectively.So,thetotalcostis$5,663.Worksheet11-3providesthesolutiontothisproblem4.(a)Thisisaquantitydiscountmodelandthedec
7、isionistoidentifytheoptimalorderquantityinthepresenceofdiscounts.Weevaluatetheorderquantitiesatdifferentunitpricesusingtheeconomicorderquantityequationasshownbelow:For,price=$1.00perunitQ=EOQ=SinceQ>19,999WeselectQ=20,000(breakpoint)andevaluatethecorre
8、spondingtotalcost,whichincludespurchasecost+holdingcost+ordercost12TotalCost==$241,960SimilarlyweevaluatetheEOQsatpricesofp=0.98(Q=31298)andp=0.96(Q=31623,whichisnotintherangesouseQ=40001).Thecorrespondingtotalcostsare$241,334and$236,64
