7/23/2019 EOQ HW Solutions

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Inventory Profile for question 1

a) The average inventory = 1000/2 = 500

Cycle time for a batch = 1250b) If !e re"uce the batch si#e to 500$ then the average inventory !oul" be 500/2 = 250 an" the cycle time to

ma%e a batch of 500 !oul" be 1250/2 = &25c) If !e re"uce the batch si#e to 250' then the average inventory !oul" be 250/2 = 125 units an" the cycle

time to ma%e a batch of 250 !oul" be 1250/( = 125