Trade Promotions (Exercise 11-17)
No PROMO With PROMO
Weekly Demand 1,000 10,000
Fixed Order Cost 200$ 200$
Holding Cost 25% 25%
Manufacturer’s Sale Price to Dominick’s 2.00$ 1.80$
Optimal Lot Size w/o promo 6,450
Optimal Lot Size w/ promo (Eqn 11.16) 60,500
Cycle Inventory 3,225 30,250
Average Flow Time 3.2249 3.0250
Forward Buy 54,050