document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=334677>Question 334677</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Economic lot size model. d=daily demand rates, p=daily production rate, t=number of days for a production run. The book saids that max. inventory is (p-d)t . t=q/p days. Thus maximum inventory = (p-d)t =(p-d( (q/p)= (1-d/p)q. Please help me make some sense out of these equations. Thank you.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #239811 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=239811\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Economic lot size model. <BR>\n" );
document.write( "d=daily demand rates, <BR>\n" );
document.write( "p=daily production rate, <BR>\n" );
document.write( "t=number of days for a production run. <BR>\n" );
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document.write( "The book saids that max. inventory is (p-d)t<BR>\n" );
document.write( "If you produce p items and only sell d you<BR>\n" );
document.write( "have p-d items left over each day.<BR>\n" );
document.write( "If you have that for t days you have (p-d)t <BR>\n" );
document.write( "items in your inventory.<BR>\n" );
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document.write( "t=q/p days. <BR>\n" );
document.write( "This defines a variable \"q\" as p*t, or the amount of<BR>\n" );
document.write( "production in t days.<BR>\n" );
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document.write( "Thus maximum inventory <BR>\n" );
document.write( "= (p-d)t =(p-d)(q/p)<BR>\n" );
document.write( "You have substituted q/p for t<BR>\n" );
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document.write( "= (1-d/p)q.<BR>\n" );
document.write( "You have distributed the product to<BR>\n" );
document.write( "get this final statement of # of items<BR>\n" );
document.write( "in you inventory.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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