# EOQ Model for the Bridgeport City

The Bridgeport city manager and the chief of police agreed on the size of the police force necessary for normal daily operations. However, they need assistance in determining the number of additional police officers needed to cover daily absences due to injuries, sickness, vacations, and personal leave. Records over the past three year show that the daily demand for additional police officers is normally distributed with a mean of 50 officers and a standard deviation of 10 officers. The cost of additional police officers exceeds the number of additional officers available; the excess demand will be covered by overtime at the rate of \$240 per day for each overtime officer

a. If the number of additional police officers available is greater than demand, the city will have to pay for more additional police officers than needed. What is the cost of overestimating demand?

b. If the number of police officers available is less than demand, the city will have to use overtime to meet the demand. What is the cost of overestimating demand?

c. What is the optimal number of additional police officers that should be included in the police force?

d. On a typical day, what is the probability that overtime will be necessary?

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...rs available; the excess demand will be covered by overtime at the rate of \$240 per day for each overtime officer
a. If the number of additional police officers available is greater than demand, the city will have to pay for more additional police officers than needed. What is the cost of overestimating demand?
The single-period inventory model can be used to determine the number of additional police officers needed cover daily absences.
Let Q* = minimum cost number of additional officers
If Demand < Q*, Q* has overestimated demand.
The cost of overestimating demand is the daily wage rate of \$150 per additional ...