With a cycle inventory of 1500 units for each outlet.

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Presentation transcript:

With a cycle inventory of 1500 units for each outlet. Decentralized Policy Problem 6.10 Each outlet demand R = 4000(50) = 200,000 S= 900 C = 200 H = .2(200) = 40 =3000 With a cycle inventory of 1500 units for each outlet. The total cycle inventory across all four outlets equals 6000 units. With centralization of purchasing the fixed order cost is S = $1800. =8485 and a cycle inventory of 4242.5 units.

Total Cost Saving Policy Inventory system cost for any Q is Inventory system cost for optimal Q is The total cost for all CC outlets for decentralized policy is For centralized system RD = 4R and SD = 2S