Stock Control Problems (Leaving Cert Applied Maths): Flashcards
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15 cards from this deck
Technique used for stock control problems
Technique used for stock control problems
Dynamic programming
Main goal of stock control problems
Main goal of stock control problems
Minimise total costs
Four components of total cost formula
Four components of total cost formula
Storage + Overheads + Hired Labour + OVD
What is backward induction?
What is backward induction?
Starting from final period and working backwards
Storage cost per scooter per month (example)
Storage cost per scooter per month (example)
€40
Overhead cost when production occurs
Overhead cost when production occurs
€200 per month
Hired labour cost when production exceeds 3 units
Hired labour cost when production exceeds 3 units
€350
Maximum storage capacity (example)
Maximum storage capacity (example)
3 scooters
What 'State' means in decision table
What 'State' means in decision table
Number of units currently in stock
What 'Action' means in decision table
What 'Action' means in decision table
Number of units to produce
What 'Destination' means in decision table
What 'Destination' means in decision table
Units remaining in stock after meeting demand
Cost calculation in Step 2 (working backwards)
Cost calculation in Step 2 (working backwards)
Immediate cost + optimal future cost
Overall profit formula
Overall profit formula
Total Revenue - Total Costs - Fixed Costs
Starting point when solving stock control problems
Starting point when solving stock control problems
The final month
Three steps to find optimal solution
Three steps to find optimal solution
Mark feasible options, compare costs, trace the path