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Ksivusya [100]
3 years ago
7

The economic order quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs include

d in the model are holding cost per unit, ordering cost, and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed.
Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation:

Let

Dj = annual demand for item j

Cj = unit cost of item j

Sj = cost per order placed for item j

i = inventory carrying charge as a percentage of the cost per unit

wj = space required for item j

W = the maximum amount of space available for all goods

N = number of items

The decision variables are Qj, the amount of item j to order. The model is:

Minimize
s.t.
;
In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost (Dj/Qj is the number of orders), and the last term is the annual inventory holding cost (Qj/2 is the average amount of the inventory).

Set up and solve a nonlinear optimization model for the following data. Enter "0" if your answer is zero.

Item 1 Item 2 Item 3
Annual Demand 2,500 2,500 1,500
Item Cost ($) 150 100 130
Order Cost ($) 200 160 150
Space Required (sq. feet) 75 50 65
W = $6,500
i = 0.45
Min + + + + + +
s.t
× Q1 + × Q2 + × Q3
Q1
Q2
Q3
If required, round your answer to three decimals.

Q1 =

Q2 =

Q3 =

If required, round your answer to the nearest dollar.

Total Cost = $

Business
1 answer:
nikklg [1K]3 years ago
7 0

Answer:

Check the explanation

Explanation:

The above question is based on a non-linear programming model, to answer this question, there will be a need to determine the optimal order quantities of the three different Ferns with diverse values of annual demand, item cost as well as order cost objective of the non-linear programming model is to minimize the overall annual cost.

Step 1: Setup a spreadsheet on Excel, as shown in the first and second attached images below:

Note: The values of quantities of the three items is kept as 1 to for the calculations of total cost.

The Solver dialogue box will appear. Enter the decision variables, objective function and the constraints, as shown in the third attached image below:

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Statement that explains Marginal revenue and it can be computed for a monopolist is C:sold.c.change in total revenue per one unit increase in quantity sold.

  • Marginal revenue  can be regarded as central concept in microeconomics which focus on additional total revenue that us been gotten by increasing product sales by 1 unit.

  • In monopolist,it can be computed by change in total revenue with respect to a unit increase that is been sold.

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Don Howard is a trader who likes to make money based on changes in the foreigncurrency exchange market. Currently the spot rate
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Answer:

Don profit in the forward market can be USD 48,152.37

Explanation:

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Profit on settlement after 3 months = (26.5693 - 25.3487)*1,000,000

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Don profit in the forward market can be USD 48,152.37 if hewants to trade USD 1,000,000

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Suppose a country without any international trade opens its borders to international trade. after specialization how will its lo
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M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and
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Answer:

a) 100 units

b) 2.5 order per year

c) 50 units

Explanation:

Given data:

demand 250 units

order cost is $20

holding cost $1

a) Economic order quantity EOQ = \sqrt{\frac{2\times demand \times order\ cost}{holding \ cost}}

EOQ = \sqrt{\fac{2\times 250 \times 20}{1}} =100 units

b) number of order for each year = \frac{annual/ demand}{EOQ}

                                                    = \frac{250}{100} = 2.5order/ year

c) average inventory = \frac{Q}{2} = \frac{100}{2} =  50 units

3 0
3 years ago
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PIT_PIT [208]

Answer:

Yes, I agree

Explanation:

As managers in an organization, proper attention must be paid to the forces in the external environment because these forces are dynamic and business cannot exist without them hence must align with these changes inorder to be successful.

Some of theses forces have direct impact with an organization such as customer's reaction to a company's product, how well the company stays ahead of it's competitors , suppliers and creditors. External forces in the environment that have indirect impact to a company are compliance with local laws, socio cultural forces, religion etc.

Practical examples

• Customer's reaction to a product speaks to what measures are taken by a company to improving the quality of products produced and sold. Favourable reaction would make the company succeed while unfavourable reaction could mar the company's performance.

• Level of compliance with local laws is also an important force in the external environment that must be adhered to. If a company must succeed, it must comply with local laws and order, failure to do so could result to fine or expulsion from the community.

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