Chapter10InentoryModels1INVENTORYMODELS管理科学英文版教学课件.pptVIP

* * * * * * * * * * Lecture Lecture Management Science:Operations Research(OR) Chapter 10 INVENTORY MODELS * * Lecture 10.1 Basic Concepts in Inventory Planning Our inventory models will concern just a single item for which the demand per period (year) is D units.? The number of items in stock is depleted over time by the demand, but also increased from time to time by instantaneous additions Q called orders, resulting in sudden jumps in the inventory level. * Lecture * The time between two consecutive replenishments is the inventory cycle length tc. ? The lead time tL is the time between the placement and arrival of an order * Lecture * Order size Q and the lead time tL will usually be the same for all orders. The cost for carrying one unit of inventory for one period is called the unit carrying or holding cost ch. Ordering cost co is the cost of placing an order and having it delivered, considered independent of the size of the order. * Lecture * For some inventory models, backorders are not allowed, otherwise the unit shortage cost cs is the cost charged to be out of stock by one unit for one period of time. * Lecture * 10.2 The Economic Order Quantity (EOQ) Model Assumptions of the basic EOQ model are: Inventory is single unperishable good, the demand rate is constant over time, the same amount is ordered each time, there are no quantity discounts, stockouts are not allowed, the planning horizon is infinite. * Lecture * The famous sawtooth pattern is shown in the figure below. * Lecture * Ordering costs if we place N orders, each of size Q, the total amount ordered is NQ = D the number of orders per period(year) N = D/Q total annual ordering costs coN = coD/Q. * Lecture * Holding cost For holding cost, we compute the total area under the sawtooth curve, which can be seen to be ?Q, so that the total annual holding cost is ch(?Q). * Lecture * Total inventory cost The total inventory costs TC per period are TC = coD/Q