Mgmt 3332 Online Class Spring 2016 Case 2 Texas Appliances Inc Texas Applia

I need help only on question 1: i am confused as to what formula to use either option 1 or option 2

Key:

d: Demand usually units per year

s: Ordering cost per order

q:order quantity in units

h: Annual carrying cost per unit per year

option 1: TC= Carrying cost+ ordering Cost

(Q/2)h+ (d/Q)S

Option 2: TC: Carrying cost +order cost+ purchase cost

(Q/2)h+ (d/Q)S+ PD

also for the second company do we use option 2 and for thefirst company we use option 1?

also on the third company how do i do it with the 200 safety stock

if you can answer question 1 please because i did it i just wanted to see if it was done correctly, THANKS!!!! would help a lot!!!

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