PPT-Random Demand: Fixed Order Quantity

Dr Ron Lembke Random Demand Dont know how many we will sell Sales will differ by period Average always remains the same Standard deviation remains constant How would our policies change How would our order quantity change. Changes in the QUANTITY Demanded vs. Changes in Demand. Price of caviar . (per pound). Quantity of caviar. (millions of pounds). 7. 0. $30. $15. 40. 20. 90. $25. $20. $5. $10. $35. 80. 60. 50. 30. . Unit 1. iPhone. 6. Price. Quantity. $600. $300. $100. Milk. Price. Quantity. $2.00. $4.00. $6.00. $8.00. $10.00. What is Market Research?. The Big Bang Theory 5x05 - The Sword - YouTube. PRICE. A . neutral. Chapter 13. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.. You should be able to:. LO 13.1 Define the term . Session 11. Inventory Modeling. Economic Order Quantity. Quantity Discounts. Last revised: July 6, 2011. Review of last time:. Capital Leases II: Modeling. Capital leases affect all three financial statements. Stock of items held to meet future demand. Inventory management answers two questions. How much to order. When to order. Inventory Hides Problems. Poor. Quality. Unreliable. Supplier. Machine. Breakdown. Change in Quantity Demanded. Income Effect. Substitution . Effect. Change in . Demand . (Demand Determinants). Income. Consumer Expectations. Population. Consumer Tastes and Advertising. Complements and Substitutes. Dr. Ron . Lembke. Purposes of Inventory. Meet anticipated demand. Demand variability. Supply variability. Decouple production & distribution. permits constant production quantities. Take advantage of quantity discounts. inventory. , list the major reasons for holding inventories, and list the main requirements for effective inventory management. Discuss the nature and importance of service inventories. Explain periodic and perpetual review systems. Dr. Ron Tibben-Lembke. Purposes of Inventory. Meet anticipated demand. Demand variability. Supply variability. Decouple production & distribution. permits constant production quantities. Take advantage of quantity discounts. Objectives . Students will…. . Examine the relationship between price and quantity demanded. . Analyze how demand schedules relate to demand curve. . Draw and explain shifts in demand curves. How prices are determined (big picture). The quantity of a specific product that a buyer is . able. . and . willing. to buy at a certain price. Usually at a particular . time. and . place. Remember those . time and place utilities . that add value to a product??. Demand. Price and Quantity. Quantity Demanded. Law of Demand. Determinants of Demand. Demand. Demand is on overall indication of a consumers (buyers/purchasers) . desire. and . ability. to purchase a given good or service. Demand and Supply are . most fundamental concepts of economics and it is the backbone of a market . economy.  . Demand . refers to how much (quantity) of a product or service is desired by buyers. . Ardavan Asef-Vaziri. Inventory Decisions in LittleField Technologies. Inventory Decisions in LittleField Technologies. In our EOQ (Economic Order Quantity) models, R and D are used interchangeably. .