Operations Management: Processes and Supply Chains, 12th Edition

Long description

The following are the approximate annual costs in dollars for the various plotted lot sizes:

Holding cost line is represented by Q divided by 2, times H. The coordinates are listed as follows:

Lot size	Annual cost
0	0
50	300
100	700
150	1,150
200	1,500
250	1,850
300	2,300
350	2,650
400	3,000

Ordering cost curve is represented by D divided by Q, times S. The coordinates are listed as follows:

Lot size	Annual cost
50	925
100	500
150	300
200	200
250	180
300	170
350	160
400	150

Total annual cost curve is represented by C = Q divided by 2, times H, plus, D divided by Q, times S. The coordinates are listed as follows:

Lot size	Annual cost
50	1,300
100	1,150
150	1,400
200	1,750
250	2,100 ...