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1、SUPPLEMENTCSPECIALINVENTORYMODELSManyrealworldproblemsrequirerelaxationofcertainassumptionsonwhichtheeco-nomicorderquantity(EOQ)modelisbased.ThissupplementaddressesthreerealisticsituationsthatrequiregoingbeyondthesimpleEOQformulation.1.NoninstantaneousReple
2、nishment.Particularlyinsituationsinwhichmanufacturersuseacontinuousprocesstomakeaprimarymaterial,suchasaliquid,gas,orpowder,productionisnotinstantaneous.Thus,inventoryisreplenishedgradually,ratherthaninlots.2.QuantityDiscounts.Threeannualcostsare(1)theinven
3、toryholdingcost,(2)thefixedcostfororderingandsetup,and(3)thecostofmaterials.Forserviceprovidersandformanufac-turersalike,theunitcostofpurchasedmaterialssometimesdependsontheorderquantity.3.One-PeriodDecisions.Retailersandmanufacturersoffashiongoodsoftenface
4、asituationinwhichdemandisuncertainandoccursduringjustoneperiodorseason.ThissupplementassumesyouhavereadChapter9,“SupplyChainInventoryManagement,”andSupplementA,“DecisionMaking.”NoninstantaneousReplenishmentIfanitemisbeingproducedinternallyratherthanpurchase
5、d,finishedunitsmaybeusedorsoldassoonastheyarecompleted,withoutwaitinguntilafulllotiscompleted.Forexample,arestau-rantthatbakesitsowndinnerrollsbeginstousesomeoftherollsfromthefirstpanevenbeforethebakerfinishesafive-panbatch.Theinventoryofrollsneverreachesth
6、efullfive-panlevel,thewayitwouldiftherollsallarrivedatonceonatrucksentbyasupplier.FigureC.1depictstheusualcase,inwhichtheproductionrate,p,exceedsthedemandrate,d.Ifdemandandproductionwereequal,manufacturingwouldbecontinuouswithnobuildupofcycleinventory.Ifthe
7、productionrateislowerthanthedemandrate,salesopportuni-tiesarebeingmissedonanongoingbasis.Weassumethatp>dinthissupplement.LEARNINGGOALSAfterreadingthissupplement,youshouldbeableto:IdentifythesituationswheretheeconomiclotsizeshouldDeterminetheoptimalorderqu
8、antitywhenmaterialsarebeusedratherthantheeconomicorderquantity.subjecttoquantitydiscounts.CalculatetheoptimallotsizewhenreplenishmentisnotCalculatetheorderquantitythatmaximizestheexpectedinstantaneou
