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xxxxxxxx xxxxxx xxx sells xxxxxxx beef brisket xxxxxxxxxx at x xxxxxxxx xxxxx xxxxxx SWOSU’x Milam xxxxxxx during xxxx football xxxxxx xx costs xxxxxxxx $15.00 each xxxx she places xx order xxx beef brisket. The seasonal cost xx xxxxxxxx xxx beef brisket in xxxxxxxxx xx $0.75. She estimates xxxx there will be x xxxxxxxx xxxxxx xx xxx briskets.

D = annual demand

H = holding xx inventory xxxxxxx or carrying cost. They xxx xxx same but xxx

different xxxxxxx and people in industry use different terms.

S x Set up cost xx you xxxxxxxxxxx xxxxxxxxxx xx if you order from a xxxxxxx

xx x Interest cost in xxxxxxx of Holding Cost. xxxxxxxxxx xx can define x = I*C.

xxxxxxxxx xxx optimal xxxxx quantity.

xxxxxx √2 x usage x xxxxx xxxxx xxxxxxxx xxxx per xxxx

xxxxxxxx usage=140

xxxxxx usage =12 x xxx

Seasonal cost of carrying=0.75 x xx

xxxxx xxxxx 15.00

xxx x √2 x 140 x xxxxxxxx√xxxxxxxxx ≈75 units

b. xxxx is xxx xxxxxx inventory xxxxxxx cost?

Average Inventory x Cost of xxxxxxxxxxxxxxxxxxx =

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