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In this model we assume that the ordering quaintly is received only over a period...

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Algebra

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In this model we assume that the ordering quaintly is received only over a period of time Further is assumed that the production rate is greater than the demand rate otherwise there will be no inventory build up and stock only will occur These two assumptions are made in addition to the assumption of model I Let k be the production rate r be the demand rate otherwise there will be no inventory build up and stock only will occur There two assumptions are made in addition to the consumption of model I Let k be the production rate r be the demand rate Let tbe the length of production run rate r be the demand rate Let t be the length of production run inventory level past of inventory part of inventory when there is no during production production Maximum inventory Total production Q kt t period 1 The average height is half the height of the triangle and the height in determined by the rate of replenishment less the demand over the replimshment G Total cost total Ordering cost Total Carrying cost uC 1 G CA Q cs 1 G CA 2r 0 always CA O Q 2rCs Total minimum cost is given by 59 CA Q rcs k r 1 k r G 2rGK 2 2rGK 2Gr k r GK 2Gr k r GK time The optimum time interval between orders is t The optimum of number of order is

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