Exercise 11-5
Input
Annual demand, D 240,000
Cost per unit, C 100.00$
Holding cost, h 20%
Fixed cost per order, S 4,000.00$
Optimal Order Policy
Optimal batch size, Q* 9,798
Annual holding cost 97,979.59$
Annual order cost 97,979.59$
Total annual cost 195,959.18$
Desired Order Size of 2,500
Desired optimal order size, Q* 2500
Required fixed cost S* 260.42$