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# How Do We Know How can mathematical models allow scientists to study processes that are

ISBN: 9781439050354 411

## Solution for problem 14 Chapter 12

Foundations of Astronomy | 11th Edition

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Problem 14

How Do We Know? How can mathematical models allow scientists to study processes that are hidden from human eyes or happen too fast or too slowly for humans to experience?

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section 12 part 11 ds 412 Model : Deterministic – Fixed-order quantity – Economic order quantity with back orders allowed Assumptions: Demand for the product is constant and uniform throughout the period. Shortage is allowed - Ṡ All shortages will fulfill as soon as items are received. Replenishment level - M = Maximum inventory level Cycle time - T = Time between each orders Below is the inventory information for an item with back orders allowed . What is the ordering decision D = Annual demand = 10,000 per year S= Set up cost= $150.00 H = Annual holding cost =$2.00 per unit / year Ṡ= Shortage cost =\$5.00 per unit Shortage = M – Q = 1035 – 1449 = - 410 units Decision: Order1,449 units every 53 days

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