Discount Quantity

D 6240
A 20
r 0.14

Quantity Discount Schedule

Level Lower Bound Upper Bound Unit cost (v)
1 1 299 10
2 300 599 9.75
3 600 999 9.5
4 1000 4999 9.4
5 4 10000000 9.2
6
7
8
9
10

Discount Table
Level Q Unit cost (v) EOQ Q modified
1 1 299 10 422.239
2 300 599 9.75 427.618 427.61798706
3 600 999 9.5 433.208 600
4 1000 4999 9.4 435.506 1000
5 4 10000000 9.2 440.215 440.214515749
6
7
8
9
10
 Total Cost Minimum TC

61423.6985523
59887
59438.8
57974.9962963
57974.996296
Given parameters
A 160
h 0.5
c 2
Period 1 2 3 4 5 6
Demand 18 31 23 95 29 37

Silver-Meal algorithm
Period 1 2 3 4 5 6
Orders Demand 18 31 23 95 29 37
No. of Period 1 2 3 4 5 6
1 z 196 273.5 342.5 675 791 957.5
AVG 196 136.75 114.1667 168.75 158.2 159.5833
Make Order x
No. of Period 1 2 3
2
TC 350 422.5 533.5
AVG #VALUE! #VALUE! 350 211.25 177.8333
Make Order
No. of Period
3
TC
AVG #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
 7 8 9 10
50 39 30 88

7 8 9 10
50 39 30 88
7 8 9 10
1207.5 1422 1602 2174
172.5 177.75 178 217.4

4 5 6 7
708.5 864.5 999.5 1439.5
177.125 172.9 166.583 205.643
x
1 2 3 4
260 357.5 447.5 755.5
260 178.75 149.167 188.875