Inventory Control Guide Page 16
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4040000
tc-100
39500
tc-99
39000
tc-98
38500
total cost
38000
37500
37000
36500
Q
In order to determine the optimal solution, one Q value only has to be kept for each curve. Let
us consider the C100 curve. Since the C100 curve is valid in the range [0-30] and has a
minimum at Q=60, the only relevant value is Q=30. Similarly, 61 and 81 will be the best lot
size for the C99 and for the C98 curves.
The final solution will be found by comparing the best solutions on each of the curves.
=
×
+
×
+
×
=
C
( )
30
100 365 30 100 365 20 30 2 38017
/
.
/
100
=
×
+
×
+
×
=
C
( )
61
100 365 61 99 365 19 8 61 2 37337
/
.
/
99
=
×
+
×
+
×
=
C
( )
81
100 365 81 98 365 19 6 81 2 37014
/
.
/
98
The best solution is in this case Q=81.
Prod 2100-2110
Inventory Control
15
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