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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
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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