Question

Consider a serial supply chain consisting of a retailer (Ar, V.), a warehouse (Aw, vw), and a manufacturer (Am, Um). The demand at the retailer is D and the carrying charge is same and equal to r: 1) Find the optimal order quantities at the retailer, the warehouse, and the manufacturer Qr. Qw, and I'm 2) Determine the relationship of the system's total cost and suggest a procedure to obtain n and m, where Qw = nQr, and I'm = mQx.

Answer 1

To find the optimal order quantities in a serial supply chain, set the demand and supply equation equal to each other and solve the resulting system of equations.

Step-by-step explanation:

In a serial supply chain consisting of a retailer, a warehouse, and a manufacturer, the optimal order quantities at the retailer, warehouse, and manufacturer can be determined by considering the demand, carrying charge, and supply equation.

To find the optimal order quantities, we can set the demand and supply equation equal to each other, which gives us a system of three equations and three unknowns. Solving this system with algebra will give us the values of Qr, Qw, and Qm.

Once the order quantities are determined, the relationship between the system's total cost and the order quantities can be analyzed. A procedure to obtain n and m, where Qw = nQr and Im = mQx, can be suggested based on this analysis.