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Inventory Analysis
Inventory Analysis
The Classical Model
Demand rate: x
Ordering cost: C
1
Holding cost: C
2
Optimal Ordering Is: Q*
Optimal Cycle Is: T*
Number of Orders Is: n*
Total Cost Is: TC
Shortages Permitted Model
Demand rate: x
Ordering cost: C
1
Holding cost: C
2
Shortage cost: C
3
Backorder cost: C
4
Optimal Ordering Is: Q*
Optimal Shortage Is: S*
Total Cost Is: TC
Shortage Period Is: T
2
Period per Cycle Is: T
