A component used in a manufacturing facility is ordered from an outside supplier. Because the component...

 

Transcribed Image Text:

A component used in a manufacturing facility is ordered from an outside supplier. Because the component is used in a variety of end products, the demand is high. Esti- mated demand (in thousands) over the next 10 weeks is Week 1 2 Demand 22 34 3 32 4 12 5 8 6 ܗ 44 7 8 54 16 9 76 10 30 The components cost 65 cents each and the interest rate used to compute the hold- ing cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint: Express has the holding cost per thousand units.) a. What ordering policy is recommended by the Silver-Meal heuristic? A component used in a manufacturing facility is ordered from an outside supplier. Because the component is used in a variety of end products, the demand is high. Esti- mated demand (in thousands) over the next 10 weeks is Week 1 2 Demand 22 34 3 32 4 12 5 8 6 ܗ 44 7 8 54 16 9 76 10 30 The components cost 65 cents each and the interest rate used to compute the hold- ing cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint: Express has the holding cost per thousand units.) a. What ordering policy is recommended by the Silver-Meal heuristic?

Answer rating: 100% (QA)

The companys ordering policy can be recommended on the basis of the Economic order qu... View the full answer