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Chae Wot uk meant bay Foomomic Ord ex
Quast. Digeunm ch utility im imvernsto se
| Contsiol:
{ MEANING
| [09 w
a formule Used. to delewnume, the
Optimal odes qHoweh ty cog evel that
Mmoumizer the Total Co welapeot tt
buclewlag Poe hokding Inventory
4k * balottives te main cosh
Vs Qolering _Goxcta =
The expenues cusoererted with Peeing on Order, |
Auk as clerbi very cReseyer aelvuingtrabye — corts
etc
1 Hploing _ Conti.
The csds
j tony j umcluduing ‘wateshousing piauownce, Cy spoilage
609- ys
Storing = Und, pete a ‘nue -P: ——eanae, eee U
a
where;
(eee Demand sade
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H * HoLeting : vou cay
| Utrhity Su QNuentor ¥
| ContROL
» Minimizes Cotte “= :
GOQ Ackps um vrecluciny Lot aac ng /
Dobeling Costs, eM wrung Bat \
ow ch a ? 4 . :
Comep oer n't spomeling tee muck, ow eithen. |
© Duevents Over soaking > |
by coluutatrrg the optinnal oudee 4426, |
eq Relfs amroierteur — OUVG appiepsunte Faventy |
| devel, prevent emcesd envervtosey oY oh ;
|
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| ° Opp recent Resource Ubidizatren '-
| ae thee cone ae ano finan ccal
[ar eirenly ig moriutouind
yee dhe ough amrounct Of Inventors.° Rtsream Vines Reonelercir Process
Caen on iceman xppreonthe te
Whew %Y Raw muck, wader ynaltiny Te
lovey ee procen vou pred dal fe
6 Jraprove Conb. Plow =
COQ ophinizes she. Pnvealewt in trventogy ,
emauseing tbat encessive Punta auc, mot Lied
“4p um took. Res frees up cask fore othe,
© Pescedtionall activities.
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Que Dour. Re conaitions por the be, bacmencl
“F Fem whose rnaimtetnaner cost — tyonaated
watt. vbw j OL ned oes valub souwe
gt means Gy Atgumweol thot thew in no dre
vale ef mons TR mewn — Hoot g & xecetveel
coud a fatlen thaw Hees oflee Uy your:
Teor CS em
tit
A(w) = cs +m,
=I
1a In oeasing Maimtormes Coyts’
ee
whew the cont af maintatwiy de iene
VUE consid ently — Guo ome , mabey — continece
wie Econamutatly wnvialed
EF Total Cot Minimization '-
ION
The tte shout due suoplaced at Be
pom wh, the btal ust: thes OCeWwU wher,
vile AVeneee Cit pus yoo Heoucu tncnoan'ag
Oftere O& Morten prriool -(
vu
+
a Dimi nthing SPpicieney oe
SY
The Mem Peformounee ot Glicromey — cLreweas or ,
Loocng sto Righow mraintainamce corti ore oe
eased preoctucchivély :
FF Cubical fatline Rear
Coubitat failne Re
The wu cH fedture. UNCCLLEL oyere Aime,
potentially, Ceceeangg costly dourndime by Keely
Con tens:
te Technolo 4 ical, 0b 40 bem scomee 1—
Guow i€ He Hoe functioning , aclvance me.
1B Lin techrodegy may weppere neu models
with Aectler Clea, Ww Lower
mMarnrtunce
Costa Maks ‘h moe eeoronual ty hep lac @
the old stem’.Que A mow foctre Ras ty dup plit Laat
| unity co product pew year te far custome
Th. clemancl & fined cy Amown amnch shortage
(ost ich cadumed ux dm be imfpinite , the
Unvertosay Noldi vose ta O30 per ead
peu mouth cy sek up Cok pre oe
bo . Detecnune
i The Optimum suum Aize,
Z Cpr Ach eolubiny period.
a Mindrum total variable cost
An (y (es
COQ= FF
D= 12, evo
O= 350
Hz O20 Ke 2 2HO wt fee eae
&0G= ss
2-40
: —
: 240 co
J 3500,008 =| 1870ie) OPh'mum seheclu bing. period
T = €06
5 X 365
= 6%2650
[2000
(iy Mintmume tote vasialle cost
D 0.
a 3 { Beer)
12000 4350 +( 1870
“1870”
zu (Glee == a [“
1370 2)
ne 74+ D244
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