Upload
ag
View
234
Download
0
Embed Size (px)
Citation preview
7/25/2019 QMM Lecture 9
1/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
DeterministicDeterministicInventory ModelsInventory Models
7/25/2019 QMM Lecture 9
2/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
Basic EOQ ModelBasic EOQ Model
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
3/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
Deterministic Inventory ModelsDeterministic Inventory Models
How much to order? How much to order? Optimum quantityOptimum quantity When to order? When to order? Optimum reorder pointOptimum reorder point
What is the total cost?What is the total cost?
What is the average inventory level?What is the average inventory level?
What is the maximum inventory level?What is the maximum inventory level?
BasicBasic EEconomicconomic OOrderrder QQuantityuantity MModelodel
EOQEOQ MModel!odel!
7/25/2019 QMM Lecture 9
4/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
BasicBasic EEconomicconomic OOrderrder QQuantityuantity MModelodel
EOQEOQ MModel!odel!
"ssum#tions"ssum#tions
$ingle item$ingle item
Deterministic demand static!Deterministic demand static!
Deterministic lead time constant!Deterministic lead time constant!
%ni&orm de#letion o& the inventory%ni&orm de#letion o& the inventory
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
5/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
"ssum#tions"ssum#tions
'onstant order (uantity OQ!'onstant order (uantity OQ!
)urchasing cost is inde#endent o& the OQ)urchasing cost is inde#endent o& the OQ
%nit holding cost is inde#endent o& the OQ%nit holding cost is inde#endent o& the OQ
*o shortages+ no sur#luses*o shortages+ no sur#luses
BasicBasic EEconomicconomic OOrderrder QQuantityuantity MModelodel
EOQEOQ MModel!odel!
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
6/26
,ime
Inventory
-evel
.
q
Maximum
-evel
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
BasicBasic EEconomicconomic OOrderrder QQuantityuantity MModelodel
EOQEOQ MModel!odel!
'ycle / 'ycle 0 'ycle 1
De#letion 2e#lenishment
Order
"rrives
"verage
-evelq30
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
7/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
Monthly #roduction o& 5eer 6 7 ... hlMonthly #roduction o& 5eer 6 7 ... hl
8illing into glass 5ottles 6 09: o& #roduction8illing into glass 5ottles 6 09: o& #roduction
Em#ty 5ottles stored in #lastic cases 0. #cs;!Em#ty 5ottles stored in #lastic cases 0. #cs;!
"nnual holding cost #er case 6 0. '
7/25/2019 QMM Lecture 9
8/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
"nnual demand"nnual demand QQ6 /0. ... cases6 /0. ... cases
"nnual holding cost"nnual holding cost cc//6 0. '
7/25/2019 QMM Lecture 9
9/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
,otal annual cost,otal annual cost
OCHCTC +=
,otal annual,otal annual HO-DI*HO-DI*costcost
,otal annual,otal annual O2DE2I*O2DE2I*costcost
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
10/26
,ime
Inventory
-evel
.
q
Maximum
-evel
"verage
-evelq30
Order
(uantity
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
11/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
Order (uantity COrder (uantity C qq Maximum inventory levelMaximum inventory level
"verage inventory level"verage inventory level
2avg
qq =
qq =max
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
12/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
,otal annual HO-DI* cost,otal annual HO-DI* cost
21avg1
qcqcHC ==
,,otal annual O2DE2I* costotal annual O2DE2I* cost
q
QcncOC 22 ==
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
13/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
,otal annual cost,otal annual cost
q
Qc
qcqTC 21
2)( +=
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
14/26
,otal cost
q.
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
/0. ...
/ 0/0 ...
. ...
07 ...
/. ...
077 ... OC
HC
TC
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
15/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
)olicy I)olicy I )olicy II)olicy II )olicy III)olicy III
"nnual demand"nnual demand QQ /0. .../0. ... /0. .../0. ... /0. .../0. ...
Order (uantityOrder (uantity qq /. .../. ... . .... ... /0. .../0. ...
"nnual unit holding cost"nnual unit holding cost cc// 0.0. 0.0. 0.0.
"verage inventory level"verage inventory level qq3030 9 ...9 ... 1. ...1. ... . .... ...
,otal annual holding cost,otal annual holding cost HCHC /.. .../.. ... .. ..... ... / 0.. .../ 0.. ...%nit ordering cost%nit ordering cost cc00 /0 .../0 ... /0 .../0 ... /0 .../0 ...
*um5er o& orders*um5er o& orders QQ33qq /0/0 00 //
,otal annual ordering cost,otal annual ordering cost OCOC /77 .../77 ... 07 ...07 ... /0 .../0 ...
,otal annual cost,otal annual cost TCTC 077 ...077 ... 07 ...07 ... / 0/0 .../ 0/0 ...
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
16/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
/. ...
Inventory -evel
,ime. /0
)olicy I
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
17/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
. ...
Inventory
-evel
,ime. /0
)olicy II
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
18/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
.
)olicy III
,ime
Inventory
-evel
/0. ...
/0
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
19/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
O#timum order (uantityO#timum order (uantity
1
2*2
c
Qcq =
cases122
)12)(12(2*==q
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
20/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
O#timum total annual costO#timum total annual cost
21* 2 cQcTC =
!"#2$)12)(2)(12(2* ==TC
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
21/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
/0 ....
cost
q
07. ...
OC
HC
TC
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
22/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
O#timum length o& inventory cycleO#timum length o& inventory cycle
1
2*
*
*21
Qc
c
Q
q
nt ===
days%&'yearof11* ==t
7/25/2019 QMM Lecture 9
23/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
Inventory
-evel
,ime
days!
. 1
1;9 /.F;9
/7
/G0;9
0/F
099;9
0F0
10G;9
19
/0 ...
**max qq =
...
*avgq
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
24/26
,ime
Inventory
-evel
q*
t*
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
r*
d
Order
Delivery
Deterministic Inventory ModelsDeterministic Inventory Models
7/25/2019 QMM Lecture 9
25/26
___________________________________________________________________________ Quantitative Methods of Management Jan Fbry
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
q*
t*
r*
d
O#timum reorder #ointO#timum reorder #oint
dQt
dqr ==
*
**
cases122$1* ==r
7/25/2019 QMM Lecture 9
26/26
,ime
Inventory
-evel
q*
t*
r*
d
Q tit ti M th d f M t J Fb
EOQEOQ MModelodel
Exam#le 4 BreweryExam#le 4 Brewery
** mod qdQr =
dd tt**
Deterministic Inventory ModelsDeterministic Inventory Models