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Shortage or Back Order (in Hindi)
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This lesson throws light on shortage or back order model.

Harshit Aggarwal
Cleared UPSC ESE twice with Rank 63 and 90 in mechanical engg. Got 99 percentile in GATE. Cracked ONGC, BHEL,ISRO, SAIL, GAIL successfully

U
Unacademy user
There is no any slide for EOQ in this model....
  1. COURSE : NDUSTR AL ENGINEERING LESSON: SHORTAGE OR BACK ORDER


  2. ABOUT ME Graduated from NIT Nagpur in 2008 Cleared Engineering Services Examination (ESE-UPSC) Exam & Got the offer letter from most of the Maharatna and Navratna Companies * Cleared GATE Exam Rate, Review, Recommend, Share Follow me on Unacademy at: https://unacademy.in/user/harsh.t aggarwal


  3. MODEL IV- SHORTAGE OR BACK ORDER MODEL This model is extension of Model but here shortages are allowed Planned shortages or back order is a situation in which a customer places order and finds that the item is out of stock and wait for the next shipment to arrive. Inv. Level Shortages may also have certain advantages: 1. Shortage increase the cycle time and thus lower the ordering cost by spending it over a long period. 2. Shortages result in a decreased net stock in inventory thus reducing holding cost.


  4. MODEL IV - SHORTAGE OR BACK ORDER MODEL Cast Annual Holeli. )24 Op Cost= (a-s Leve 26. Max. Tnve Level tg oheve Time Buch osde cost o


  5. QUESTION Demand per year 6000 units Unit CostRs 40/ Set-up Cost Rs 500/- Holding cost/year Rs 8- Shortage cost/unit/year Rs 20/- Find I. Optimal lot size 2. Optimal no. of units back ordered 3. Maximum Inventory level 4. Time between orders


  6. SOLUTION Ch 23 1 24.69 3420 8+26 31.92.


  7. THANK YOU