ZLIT TEL ‘fe productfen:. | & The Ropea cement prebecms QrAe Conurned with simatton arveelies wen -tonce item yun ae men, Machine, xolecrye billps ete. neta suptecement att to snd § decveaud ° dap iecenea » fat oy Derren P The Repracemint probe — alu bocatier 4 ow -foseuttng Factor 1 The otd fem has pewons Worse oF pugubred — votpensEuut maintancous hb Q the Old fam has Fatud due ce ee eA NNN ee ide 4 gcldens he ose epptctine dusign O cqtpracnts Be ha betiome guatlaher Sp the = mance (with emo a. repeoamenk g bur paid Ofte amount whit do ne dike vPorate Fkems OQ, we ; {ae : | @& Types a repeacement pottay: » Fndtirfduat sueplacemuenl pokey & 7 unde AES pokey the Flame Vo repeaccale Prancedfately after oe a. ieee under Tht poxtey devistos as ao au tne tere mes rapeaced » teres pecttue oy the Fact chat hae Fall’ coy hare nok Fate all, viepeacemen | pocted oF uett bake be hem we conedered The minimum value B ° 2 athe Guerage Cost Shot Us nrlnfmem op PLD) wo deternfine opium tepeacement 0 Rexfod" m7 p 4 q fron poem Machine + Ponds _— hes pact cost poses ane Ree ees lo, watnlatining 0 gy XN entre whow Purchase pote 2 6000 due hae x - X gue pir’ Marine (000 cock RS > XN N ° 3 oe ln 6 \ ° teve | tae | 1420 | neoo | 2300 | 2800 \ 3000 150 | 16D j a _ / pinmdne OF char age ane Machine & suplaced ‘ cs 7 Purttrase ¢ Goa | $ = Pesate veer bur 530% | ae Refer - : Toa apkal cost Duarage cost Cprevy =fo 4 Coowinn 6 Qe. Choon mime [_ vane ar3lelacy SF eto him 2+ The cose oy tne Machine us Z 6100 and is | Wesabe i I | | [ Syab Vatue i Z (00 The mantatnis cost Found From sxpertene oye Fottocus | yoar [! 2 | la |= lé la |s matratnu| 16 | ose! ace | tbco lace] 1200 ica 200 cost (Re)! Laced when shoud maciine bt rep. SO. nie Sinuw , The Sorab yatur Sb Mating te £100 9° The Vatu O, the maui peak “ter yor? demain .comrant. Heme ¢- bt00 , $= (00 > Your malin tana] To | Torateosr | Aura. | COS) © PI oo | ae ie C$ | eeu) oy 1c) |= Pr , too | too boc | 6100 Sion 2 26D | boce | 6350 ays | 150 3 4400 | te0 booO | ots aaso 4360 4 boo BSD oe 1239 5 : | g260 | - Loo | agse 000 | | i @ | age | BGs boow } Ayeo ee | oop (ccoo lese . NCO “esp beco 13050 163)The Machine Aves | Be Yeplaced oy i ™m lee ond © 6 gous . ; y ~ 12 S | poner? ? S Bare S | © gp, FAKE Ownty Rate prom WB past \ \ shar Ahe Cosy : | pod Per year fs operating a | ook whos puychace pevre prio oe | % ae 60,000 ave us gtute hetow a eg Se age 1poo | | $000 | 2ecc0 oparat*ng \Aoco aA NK ee 2 5 years ane Oparattng cosk Ys YUpers , bee ¢ ve Artreaued by 10% oO ‘cadaaaeal ane best maptacement, vo hak a Soouréon + aku = loo0of X17 10 4 ce inna f rr = boo wn apowweaned by &co0 Thus The = Recare Vatu that (e-9) Trev ead by oneal | your woe meant Popp kung Year ———————Mage annual esr & Cast b8) vo sy Yeo) Ruauwauus 7 purchaa 1 ) Phe - Ruale a a ® PS ye reed w Gs) io ©] F420 ovo — ° 418) eco 4000 12000 aac os 442,000 1000 Usve0 37000 A 36, 00 2x 000 tev00 55,000 & | 30,000 20000 voce 15000 | | se 241 000 36000 , 30000 M000 | (Ext=) a 18, 00 4 a.c00 4p 2000 163.000 ‘ oF 201000 pe) G00. ye, 000 4 €000 | peat) 4 | 6,000 | sh. 000 51,000 gxvoo | iene Aa iw 19 0 000 bo; 000 bo000 jg1s000Fuse cams haus Enerzasd tity coat ag thay lontinus Sn serule dee ty Lnowanod APreck Operating Cos (gas and 08) and Sneveated Math tinanane (repairs » tye, toatterfes 2ec). The Reohecm dy: j | Sntaas cose £8 Rs, 3500 and aAhe trade -2n-vatus [drops as ims paises" Unbdl eS seacnes 0 | costant Vatur “) ®. SDO ~- trfuen Jaw cost & | tPerseing » Matneakning and the. brade-In- vatus ,i wane Aho n qs Propey — Longtin H Surin, batoy, 3 ot chord he seepeaced, i "a 4 yan % este —-_eoOoOo year ond : rode in VOIME aa cosk pang Ope aySogution:: whe are gtucn Cc =R4¢.3500 Stn) - year and tradt -Z0- vate (ors) 4 Matnkalnan& ost §(n) - Operaténg Lok ‘The optfruina —x-eptacowent pertod fs dekermtned fn the = babtr bestow. [yea | sony | epem | + fr] _tn) 1 | fe 1e00 | \ecoo | a 7 Q 2200 4000 | QUyeD by so 3205 3 atoo btc0 2400 | 4.600 oo a 3.200 aap | Bobo]. ta.2cq P22E T. & moirimum for ne 2 Dene, The Cav Shoutd be repaoued eueng ard yea, Psvopceme:. @ Haine coer Re. Ve00, — Bnnutal operating cost L&R. aco Ry AM Alact Yaar and then Lnoveased by Re. aoco tinend year. Determine — thy Oph wun | repracement Pettey. 20 (OO Hacttne «6B cot. Re. -stoyoan, Annual operating corr & Re. yO Fox the Rast Year and then | Bnvveaod by Be. FO Luery year . you now aon “4. amine = A Ulhfth ¢ 4 Som year Old, shoud sore FY urltth Bp, 2 ree fe te, when : | pe Makin BP, 4 Cat The Salar age Cosy per year tan be pompued = OM Gear oy — betoww ASI IMM SSA. So Rexate Value = zor melee) ge] @ pe or] en | if es | -erriop a | 2co 200 ao | tace 2200 24400 ee ed. — ; 44200 | boo 4000 ts b00 _ : . mee |) ee 2) ¢00 | 1 ea e ee eel 2 rs 3 8 ee RSNA AN NK eer Yyoor Ruenntng cumemutabine \3, 600 1b 400 20,000 | 2p000 7%The Abou Tahe Snclfcats that machine |B! Shoutd be wepeaced at thy end o% 5% Year. Sine ene Loruett anage 8 Rs .s4 000 fox HachPhe Bo fe tes than the Locust auUenage Cs 8 Re Saco for Machine A, Mach?rs pb Can he Yapraced by Machkthe B. Now ue haus ty detarmint as bo when a Shoutd pe speared. Macnene o shoutd be vepraced when AW Cosk fox next yao a sunning this Machine becomes worn than He Auirage Yeorey ost fox Machine B \ = 6 ©, | Nrow sohar tock Yo Machine A Sn the Ferst | Yoor = Ry 4200 for Nathins A in the To tat cosy UW year = Re. Wo - Ra .7200 = Rr. 9200 wy year = Rs ‘dt 200 w year = Rs 6200 Ps ae cos kg vunning uachtne 9 fn 11). Year (Re-YRO) B More than athe OLera ge. yey Dwr pe Mani CR ood: Matin 6 Shoutd bo vepeared ar the 2nd ®& hwo years CPie) ome year aptey St ons year old.bs ° | an 2 7 re psaced °, i 2s tp be we : : ae co to be Syuleled how, tery wm ee Bt kt found ror p i oe . ory Aequt red . Forrowing dato ws greet ayes which the pres a. after tt ULears our, he yen dosvattatfor gawage value opanaeting cost cosh a heginniog ar 2nd 0 duntng ae | oy yee CRD peor LRA) year CR) — te L ~ | too fl | Ao °° sv a | Qvw | 2 | 220 | 20 ae 4 | ano |. ao | se vo | (55 - | : | (+o } ic | 24e eee e | | | ° an and the EPLO LIM Wm tornecpondi ng a hecies maton, Sorrfony- wing abe qfven Lnrtor . cnn) Coss OY AML PTAA Hite evin@rarn | Oana computed Ln she Foot ng Faber. ee.Yeoay (0) 200-100 = lwo 4 Aloe SD 3 = leo lao p30 4 a0 ceo 5 DUS Tse 470 tba 320 eel Aneurd be SUPLAed 2WAY Thisd Yaar. Suhw Te & mininuim For n=3, Th Nati———. Meloy a Dnven ee ee Tniroduuttons:.. Oe Jnuantony mag bs dtfined ag a stow i goods > commncdiitces and Other oconomee Feurowus that ue tosud For Smadth and Aer Sunt q o the biwtnes ttm. TAL Sratemtory, may he Kept Lp os anyors the FoLeoving ferm:. Rate mate aus The materiat wonton are wep EnYou wf, gpk ro ™4 Precluction 0} goes 2 wwlorkeng Prrees Same Fenfihed goats pve stored Auxkng produetfor Pprewss c 4 Finished goods - gecds ate ready te gegen Frm acre Factory. Type Se. Touentent 1. Fktuucheatton Rnuenbony- 1 Tp vean the SA ALIS IIIS Sl probtem that : and lsad Kruse hak ager procucedfon oy the ayre Srouks are cated Feuchration Fnucn borg. a anttctpated Lnuentortes - There ave basttd up « : ye aavance fey the vrearen oO» cate : p : thn hey pran $s hutdoutn x Prem AUC he premeton progreny ave a ° she antidpated Emuentory Meeps men 3 machine , hours Foy Furue Purpose a Lok shze Srwmuentory — The rate OF Atperent’ From rate Ob Piet er 2 EEA A VERA NS Conmempiieo Bz PL Producttyn ete OF purchacing in large Guanes Rracon en tae £ borg i+ bal? nuentor Reger ror watiete ny Leh 1. Tywentory ut pt Bn smooth & ayerebure oreenntng oy bustress & Te provides mast ap eae Customers Ob nerve norte mi |. beta , Long and Sak running g paster The pwductPon Cour Lc Le | Te ack At burger Stoce S4 shop seep Ron | ; , : | | \ a4 Oy 400 many 5. Te Aake tan economtc fluciatfons . wd rashid Cotk Ca Xr ee The cosh creeorfatecl wth caring or hosdt ng he goods fn srcw & Known as Nord nq cost Shortage, cost aaa The penatty coct that slequitred as 4 susune. % suenning OW © cose are. Known as Shortag ose ° Thus ee are. assgoated uvfth cbrekoins goods trrougs prackng an order ox paxcnasing oy = Manukackur? nq Dafoe _ Starting ' he Production . [acoke OMA Cutan ot nore’ e vate or 2conomfe - . gi ( FORD COQ, 47% wry) oO carrg?q Srwantory. and ane cost 9 ox dering me assumed conderPon contatntty acm nd, ore Known AYLI NMS und ad hot annua potexrinteife Fnwentory Medel * kes ategor4- / pe ce [ee Ae the category J 4 @ nlodel 1° purchasing Pepdel wots (ee 4 ae : ; ; shortage ; nodsl 2! manupachirtag Fe eek able y rood 2 Shor Frage Ace or . Mod 2° parcratng paodel with § age : manupachertng node! wlth : Snyinkte ) 2 ' B manupachis wrdiy Yo cup pey goods a unt Hye , ay unthorm vate oD re : 4 wo shmtages are altowed. tHe, charts procuchtorRun Pury Kwe , ~~ unk L Whore E! % 1 EPxed and Sekp cost Moet er munsts cogs and, ‘¢) tm holding toe fer ite Enuen tomy _pretuce: x opltimcem. Hau’ fn terval to = pes . Gq ze 2ap —— oe : : ° a c Kk MNUMiLMN Auwracee cost por unth fw tela) = Jaqtar a Time pau boo Constant rus order th = “Yo R Nib o, order’ for per year 2 Mbp oprtma thal. bork = Crx peie perunth) +o aconomfe order Guantlt Foe CH) = REG, Ca | { a = ee | Peobeem 1: : | bo Lomapang, tubes He Ob” at, “DY | | . | 500 ; é i pee yemy 5 vee ener wipes ja per kg The Cost #20 tp pay some order: | | caatng wor. | Sruentooy lore per yeas » How dete. ghould the prdty for aeapenity 8h dbe placed And. How much. | gquueton > Rs 5000 pee gear D Setup oe 2 Fao , hotdlng cost C, = Ss ve [ae y economfc ord Curanttty (€0@) = (ve) = [acre » _[aeaoxsvee : : a Oe . : = f2,00,006 0.2 = \L©,c0,e00 =z tooo kg: : Ce Ve a) Optom Agme Lnterval Yo = Jaca " Re : b 9 0.2% sv00 YO tooo 0.04 0.2 3) Mingmum aenade “oer = oo ek ‘000 n y " +4 COO = oo a aeVV Pubiem o:. 2 = Je Nicene has bm SUppeg nie a | curtomey eutin boo uns op, WU product | Pay yeay . Shortage ave Nok AlLocrd and | Storage cose = AMount Lavo pate par unk pe “yew The Setup twee & £ BO Fine | nw tronomec ordey aunan (Png bo | a mtn imum ae cgye ue ost Oprrmum Number order per yea 2 a Oplermaum perfod lo Sup pry per Opler Soution: Bamand R= boo UNLE per year, C2 = 280 C1 = bo pakse per Year ordey Suanttey : Joey R > para cy boxta Ss a ee 2% #0 x 60% 0.60 0.60 § 3 . ; : J tpeveo = HOO Unies yearaa Cas yap lelay a) Nenimum — auage yeanty Lost Co Cay) Ta i nD Cyt ie | eo eee ie : i] 51 ..boo E Qo =) ) optim num ber OF Orders per year to - A) Optimum parted oy Supply per optimum ee 1 ordey foe SS yearPr | (Raebtom 3 ** Pp urtath , Sem cote & aac Por ben = cre _enentndly eveausbremants are C nse ang Oo, aun dime — the Stok 4 Stored Saapge Rentey Thee th a wLtkup Cost Klo0O. The cosr colffog j Enuentony hat hoon wstfmated ab 10 %o %% Khe aurrage Lnuentony per year. tonar & the Pergo order Suan ( €0a> v Demand R> 5 tom per month = H X\2 = bo tens per Gea = 10% | Sump Cor Ca- £1000 , holdtng cost Cy = 10% nur vy ueay = 235 XI - Ci pay Pleo per ype uf, Base p 1) Lenomée order Suantteg Yo «J 263R Cr = Jax ooo * vO aQa-e = J 120,000. Q3-s~ © J ee. 38 = AL yesPsvobecm 443+ for an Plem The production Be Srtoneansouw enorage Cost oy on Lum 9 aBPer mony . ! and Setup coy eK OS pay run, wlth she pamand te 800 unttr por month. Fend opkimum — order oucancity 40 pe pede 4 suup and hence » deteomlned Jolat cost pres Sette pee month oy Sterage and Sotutton:: . pemand R= 200 uns [permonth , to «| ReMparemum 1, Leonomie over Guantity a ee : cy " 2X1 £200 ac c).= £ae = F700 on . fw ao) 2) mentum auerage cost Cola) = jeune = Jax as xj 900 = Jo, cePeiobeom © ** | ee j The annuat aemand Mr an Liem os Baoo aunts. The unig vssr db £6 and Snuentony carsistng charge 25 per annum, | | FG aie toch 1 produ Le & 160 ( Setupeat) dotarmened wtonemie oOTedue Suantity Tire Debuueen tuD constquetire 3 j ordiy 2. Number oY praLys per gear | 7 oe optimal toral cost | | ° ; | Cooutton:. Demand R= 2 Roo UN , Cy) = 6 Xas 100 so) Ore C3 = Ki1E0 1) 2eonom?e = Oder Buanttey = yo _ |acaem > Jacrice x32) Le “Lavoe Ae $00 Yo =a) Tue = batureen tun order 2 £20, 3 A. amontns R 3200 ap ® 3) numbkis SO, Ordies Per year = Ue Ses Cys 4) The opal fotat cost CRA pris per anth> + Co |e = Jax I. x so x 2a160, KG. Sic = 4 opr’mal yorat wet = (3800 X B)AIQOO - t¢ta200 +'200 = 20, 3,00 ——— * Unth ay X