Mixing
Economic Order Quantity with quantity-dependant order price (Operations Research)
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In an EOQ inventory model, how can you minimize inventory cost given a Holding Cost (H) and an Ordering Cost (S) that depend solely on the order quantity? For example, if the ordering cost of a product is 30% of the product price, how can I calculate the order quantity that minimizes the total inventory cost?
The total inventory cost is given by this formula:
enter image description here
The problem arises because, given that S (Ordering Cost) is dependent on quantity Q, the variables cancels themselves and I cant find a way to choose Q to minimize the total cost.
nonlinear-optimization operations-research
asked Jan 5 at 2:28
user35032user35032
1
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add a comment |
$begingroup$
In an EOQ inventory model, how can you minimize inventory cost given a Holding Cost (H) and an Ordering Cost (S) that depend solely on the order quantity? For example, if the ordering cost of a product is 30% of the product price, how can I calculate the order quantity that minimizes the total inventory cost?
The total inventory cost is given by this formula:
enter image description here
The problem arises because, given that S (Ordering Cost) is dependent on quantity Q, the variables cancels themselves and I cant find a way to choose Q to minimize the total cost.
nonlinear-optimization operations-research
asked Jan 5 at 2:28
user35032user35032
1
$endgroup$
2
$begingroup$
I could type it all out, but everything you asked and more is in this chapter: ime.unicamp.br/~andreani/MS515/capitulo12.pdf
$endgroup$
– MathIsLife12
Jan 5 at 2:32
add a comment |
$begingroup$
In an EOQ inventory model, how can you minimize inventory cost given a Holding Cost (H) and an Ordering Cost (S) that depend solely on the order quantity? For example, if the ordering cost of a product is 30% of the product price, how can I calculate the order quantity that minimizes the total inventory cost?
The total inventory cost is given by this formula:
enter image description here
The problem arises because, given that S (Ordering Cost) is dependent on quantity Q, the variables cancels themselves and I cant find a way to choose Q to minimize the total cost.
nonlinear-optimization operations-research
asked Jan 5 at 2:28
user35032user35032
1
$endgroup$
In an EOQ inventory model, how can you minimize inventory cost given a Holding Cost (H) and an Ordering Cost (S) that depend solely on the order quantity? For example, if the ordering cost of a product is 30% of the product price, how can I calculate the order quantity that minimizes the total inventory cost?
The total inventory cost is given by this formula:
enter image description here
The problem arises because, given that S (Ordering Cost) is dependent on quantity Q, the variables cancels themselves and I cant find a way to choose Q to minimize the total cost.
nonlinear-optimization operations-research
nonlinear-optimization operations-research
asked Jan 5 at 2:28
user35032user35032
1
asked Jan 5 at 2:28
user35032user35032
1
asked Jan 5 at 2:28
user35032user35032
1
asked Jan 5 at 2:28
user35032user35032
1
asked Jan 5 at 2:28
user35032user35032
1
1
2
$begingroup$
I could type it all out, but everything you asked and more is in this chapter: ime.unicamp.br/~andreani/MS515/capitulo12.pdf
$endgroup$
– MathIsLife12
Jan 5 at 2:32
add a comment |
2
$begingroup$
I could type it all out, but everything you asked and more is in this chapter: ime.unicamp.br/~andreani/MS515/capitulo12.pdf
$endgroup$
– MathIsLife12
Jan 5 at 2:32
2
2
$begingroup$
I could type it all out, but everything you asked and more is in this chapter: ime.unicamp.br/~andreani/MS515/capitulo12.pdf
$endgroup$
– MathIsLife12
Jan 5 at 2:32
$begingroup$
I could type it all out, but everything you asked and more is in this chapter: ime.unicamp.br/~andreani/MS515/capitulo12.pdf
$endgroup$
– MathIsLife12
Jan 5 at 2:32
add a comment |
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$begingroup$
I could type it all out, but everything you asked and more is in this chapter: ime.unicamp.br/~andreani/MS515/capitulo12.pdf
$endgroup$
– MathIsLife12
Jan 5 at 2:32