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Solution When Demand is Uniformly Distributed
Solution When Demand is Exponentially Distributed
Solution When Demand is Gamma Distributed
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8Ka+hq2 acquisition cost algorithm Assume assumptions average cost average total cost Bell Telephone Laboratories buy j modules compute q contingent modu Cornell University Cost per Period customer buys Customer Demand Customer Growth Rates customer with growth customer's define DEMAND IS EXPONENTIALLY deterministic economy of scale expected value Exponential Demand exponentially distributed expression 2-11 expression for G(q Figure 12 finding q fixed purchase cost fixed setup charge fixed setup cost Gamma distribution given customer graph growth design problem holding costs installation cost integer J+Dq manufacturer modular growth design modular system module sizes multimodule problem number of modules one-module problem optimal module optimally buy Perth Amboy Physical Feasibility present worth properties of G(q q for Exponential q for Uniform region Rj(q Section 2.3 SOLUTION WHEN DEMAND solve spare equipment subproblem Theorem total cost Type A Module Typical Mix Plot uniform demand