Suppose a certain company has a product for which the assumptions of the inventorymodel with backorders are valid. Information shows that:1 = 100 units/yearh = 5/unit/yearPhP 25/unitC =K = PhP 15/orderThe company is considering the possibility of allowing backorders to occur for theproduct. Find the optimal order policy and the optimal total inventory cost given thatthe annual backorder cost per unit is estimated to be PhP 30.(Q* – S*)²+ h-2Q*S*2+ b + Ac2Q*G(Q", S*) = K{

Answered: The company is considering the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 13P

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The company is considering the possibility of allowing backorders to occur for the product. Find the optimal order policy and the optimal total inventory cost given that the annual backorder cost per unit is estimated to be PhP 30. (Q" – S*)? +b= 2Q* G(Q", S*) = K( +h + Ac 2Q*

The company is considering the possibility of allowing backorders to occur for the product. Find the optimal order policy and the optimal total inventory cost given that the annual backorder cost per unit is estimated to be PhP 30. (Q" – S)? +b= 2Q G(Q", S) = K( +h + Ac 2Q