The demands and holding costs for three products are as follows: Product A: 1,880 units/year, h...

 

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The demands and holding costs for three products are as follows: Product A: 1,880 units/year, h = $21/unit/year Product B: 2,040 units/month, h = $6/unit/year Product C: 675 units/year, h = $12/unit/quarter a. Calculate the optimal lot size and optimal ordering period for each of the products, assuming setup cost to be $600. b. Comment if it makes sense that the setup cost is identical for all three products. c. Following the optimal power-of-2 policy, build an order schedule (using a table) for 10 weeks in terms of when/what/how much. Release the first orders at the beginning of the first week. d. Calculate the overall increase (%) in the annual cost compared to the optimal EOQ policy, for each product and overall. The demands and holding costs for three products are as follows: Product A: 1,880 units/year, h = $21/unit/year Product B: 2,040 units/month, h = $6/unit/year Product C: 675 units/year, h = $12/unit/quarter a. Calculate the optimal lot size and optimal ordering period for each of the products, assuming setup cost to be $600. b. Comment if it makes sense that the setup cost is identical for all three products. c. Following the optimal power-of-2 policy, build an order schedule (using a table) for 10 weeks in terms of when/what/how much. Release the first orders at the beginning of the first week. d. Calculate the overall increase (%) in the annual cost compared to the optimal EOQ policy, for each product and overall.