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  • GDB Solution File.

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    Saif Suleman
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    The document presents two solutions to optimize the cost function C(Q) = C2D(Q-R) + Q/2R. Solution 1 derives an expression for the optimal quantity Q in terms of the parameters C2, C3, D, and R. Plugging this expression back into the cost function yields the optimized cost C(Q) in terms of the parameters. Solution 2 calculates numerical values for the optimal quantity Q and production time t by plugging in example parameter values.

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    GDB solution File.

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    The document presents two solutions to optimize the cost function C(Q) = C2D(Q-R) + Q/2R. Solution 1 derives an expression for the optimal quantity Q in terms of the parameters C2, C3, D, and R. Plugging this expression back into the cost function yields the optimized cost C(Q) in terms of the parameters. Solution 2 calculates numerical values for the optimal quantity Q and production time t by plugging in example parameter values.

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    6 views1 page

    GDB Solution File.

    Uploaded by

    Saif Suleman
    The document presents two solutions to optimize the cost function C(Q) = C2D(Q-R) + Q/2R. Solution 1 derives an expression for the optimal quantity Q in terms of the parameters C2, C3, D, and R. Plugging this expression back into the cost function yields the optimized cost C(Q) in terms of the parameters. Solution 2 calculates numerical values for the optimal quantity Q and production time t by plugging in example parameter values.

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    of 1

    Solution No 1:

    C2 D Q(R  D)C3
    C (Q)  2 C1 D   (A)
    Q 2R
    C C D (R  D)C3
     0 22 
    Q Q 2R
    C
    Putting 0
    Q
    C2 D (R  D)C3

    Q2 2R
    2C2 DR
    Q2 
    C3 (R  D)
    2C2 D R
    Q
    C3 R D
    Hence the optimum quantity is:
    2C2 D R
    Q
    C3 R D
    Putting the value of Q in (A) in order to get the optimum cost
    2C2 D R
    (R  D)C3
    C2 D C3 R D
    C (Q)  2 C1 D  
    2C2 D R 2R
    C3 R D
    C2 2 D 2 (R  D)C3 2C2 DR(R  D)2 C32
     2 C1 D  
    2C2 DR C3 (R  D)4 R 2
    C2 D (R  D)C3 C2 D(R  D)C3
    =2 C1 D  
    2R 2R
    C2 D(R  D)C3
    =2 C1 D  2
    2R
    2C2C3 D(R  D)
    =2 C1 D 
    R
    Solution No 2 :
    2C2 D R
    Q
    C3 RD
    2*30*100 300

    2 200
     3000 1.5
     54.77 *1.2247  67.07
    Q 67.07
    t   0.67
    D 100

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