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- INVENTORY THEORY-FIXED QUANTITY EOQ
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- THIS PROGRAM INVOLVES AN INVENTORY PROBLEM FOR WHICH IT IS
- ASSUMED THAT THE FOLLOWING CONDITIONS HOLD:
- THERE IS A CONSTANT ORDERING COST PER ORDER
- INVENTORY HOLDING COST IS CONSTANT PER UNIT HELD
- NO BACKORDERS ARE PERMITTED (STOCKOUTS NOT ALLOWED)
- ORDER LEAD TIME IS CONSTANT AND KNOWN
- DEMAND FOR THE ITEMS ARE CONSTANT AND UNIFORM THROUGH TIME
- THERE ARE NO QUANTITY PRICE BREAKS.
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- WE SHALL INPUT LEAD TIME,ANNUAL DEMAND, ORDERING COST,
- HOLDING COST PER UNIT PER YEAR AND UNIT PURCHASE PRICE.
- OUTPUT INCLUDES OPTIMAL ORDER QUANTITY,REORDER POINT, AND
- TOTAL ANNUAL COST OF THE INVENTORY SYSTEM.
- PRESS ENTER TO BEGIN?
- ENTER ANNUAL DEMAND(IN UNITS) ? 123456
- ENTER REORDER COST(PER ORDER) ? 38.56
- ENTER LEAD TIME(DAYS) ? 37
- ENTER HOLDING COST(PER UNIT/YEAR ? 1.75
- ENTER PURCHASE PRICE PER ITEM ? 12.74
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- OPTIMAL ORDER QUANTITY IS 2332.49 UNITS
- THIS MEANS ORDER ABOUT 52.9287 TIMES PER YEAR.
- OR ABOUT EVERY 6.89606 DAYS.
- THE REORDER LEVEL IS 12514.7 UNITS, I.E. WHEN THIS QUANTITY
- IS REACHED REORDER 2332.49 UNITS.
- TOTAL INVENTORY COST(HOLDING + REORDERING + COST OF ITEMS)
- PER YEAR EQUALS 1.57691E+6
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- PRESS ENTER FOR MORE? -1
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