You have been hired as an operations research consultant by a company to reevaluate the inventory policy
Question:
You have decided to recommend that the company switch to using the EOQ model with planned shortages instead after determining how large the unit shortage cost (p) is compared to the unit holding cost (h). Prepare a table for management that shows what the optimal order quantity, maximum inventory level, and maximum shortage would be under this model for each of the following ratios of p to h: 1/3, 1, 2, 3, 5, 10.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
Question Posted: