Operations Management, Binder Ready Version: An Integrated Approach
Operations Management, Binder Ready Version: An Integrated Approach
6th Edition
ISBN: 9781118952610
Author: R. Dan Reid, Nada R. Sanders
Publisher: WILEY
Question
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Chapter 12, Problem 23P

a.

Summary Introduction

Interpretation:

The maximum inventory level of HP.

Concept Introduction:

The maximum inventory level of HP is given as,

  Imax=Q(1dp)

Here, Q is the batch size. D is the demand. And p is production.

b.

Summary Introduction

Interpretation:

The total annual cost of the operating policy.

Concept Introduction:

The total annual cost is the sum of total setup cost and inventory holding cost.

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