Exercise 11-3
Input
Annual demand, D 6,000
Cost per jacket, C 100.00$
Holding cost, h 25%
Fixed cost per order, S 100.00$
Replenishment Order of 500
Batch size, Q 500
Annual holding cost 6,250.00$
Annual order cost 1,200.00$
Total annual cost 7,450.00$
Time in inventory 0.042 years
Optimal Order Policy
Optimal batch size, Q* 219
Annual holding cost 2,738.61$
Annual order cost 2,738.61$
Total annual cost 5,477.23$
Time in inventory 0.018 years