清华大学-生产计划与控制：PPC-L07A-Inventory-Control-A-2.pdfVIP

Lecture 7Lecture 7 Inventory ControlInventory Control Subject to Known DemandSubject to Known Demand (2)(2) Ye ChengYe Cheng Dept. of Industrial EngineeringDept. of Industrial Engineering Tsinghua UniversityTsinghua University 1 Quantity Discount Models Suppliers charge less per unit for larger orders Encourage the customer to buy in larger batches One or more breakpoints • Defining changes in the unit cost All-units discount Incremental discount • Discount is applied to all • Discount is applied to the of the units in an order additional units beyond the breakpoint Ye Cheng, Dept. IE, Tsinghua University                                PPC                    Lecture 7  Inventory Control Subject to Known Demand (2) 2 Example of Quantity Discount Price schedule of the Weighty Trash Bag Company Less than 500 bags 30 cents per bag 500 or more, fewer than 1,000 29 cents per bag 1,000 or more, 28 cents per bag Breakpoints: 500, 1000 All-units discount The order cost function Q Q 0.30 for 0 ≤ 500 ⎧ ⎪ C Q Q Q ( ) ⎨0.29 for 500 ≤ 1000 ⎪ ⎩0.28Q for 1000 ≤Q Ye Cheng, Dept. IE, Tsinghua University                                PPC                    Lecture 7  Inventory Control Subject to Known Demand (2) 3 Optimal Policy for All-Units Discount Schedule Example: A company uses 600 trash bags per year The fixed cost of placing an order is $8 Holding costs are based on a 20 percent annual interest rate c0 = 0.30, c1 = 0.29, and c2 = 0.28 The EOQs for each of the unit costs (0) 2K λ (2)(8)(600) Q