Inventory problem: Quantity discount model

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• Inventory models: Quantity discount model

  Item D (units/year) Ordering cost ($) 1 10,000 25 2 1,000 25 3 4,000 25 4 130,000 25 Find attached the solution to your problem. This posting contains solution to following problem on Quantity discount model of inventory management.

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  This posting contains solution to following inventory problem on quantity discount model.

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• Inventory control

  Following are the general steps to perform calculations of discount model. • Step 1: Compute Q for the unit cost associated with each discount category.

• EOQ Model and Quantity Discount

  202342 EOQ Model and Quantity Discount Apply the EOQ model to the following quantity discount situation in which D=500 units per year, C0=$40, and the annual holding cost rate is 20%. What order quantity do you recommend?

• Generating 95% Confidence Intervals

  Answer questions 11 and 12 based upon using the quantity discount model. 11.

• Multi-period news vendor model with capacity constraint.

  Constrained Multi-Item newsvendor model: For a multiple item newsvendor problem with i items and a capacity constraint (Budget or space constraint), Steps to Solution: Calculate the unconstrained optimal order quantity for each item separately.