Question: 1) Setup Cost = $464 per setup Holding cost = $1.87 per unit per week Week 1 2 3 4 5 6 7 8 9
1)
Setup Cost = $464 per setup
Holding cost = $1.87 per unit per week
| Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| Requirements | 371 | 416 | 208 | 118 | 134 | 470 | 298 | 401 | 339 | 319 | 167 | 341 |
| Order Quantity | 371 | |||||||||||
| Beg. Inventory | ||||||||||||
| End Inventory | ||||||||||||
| Setup Cost | ||||||||||||
| Holding Cost | ||||||||||||
| Total Holding Cost |
Determine the average inventory for Week 1.
2)
Setup Cost = $412 per setup
Holding cost = $1.28 per unit per week
| Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| Requirements | 366 | 468 | 169 | 412 | 282 | 222 | 455 | 300 | 310 | 406 | 438 | 405 |
| Order Quantity | 366 | |||||||||||
| Beg. Inventory | ||||||||||||
| End Inventory | ||||||||||||
| Setup Cost | ||||||||||||
| Holding Cost | ||||||||||||
| Total Holding Cost |
Determine the holding cost for Week 1.
3)
Setup Cost = $499 per setup
Holding cost = $1.84 per unit per week
| Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| Requirements | 191 | 197 | 121 | 269 | 395 | 146 | 254 | 121 | 462 | 238 | 361 | 450 |
| Order Quantity | 191 | |||||||||||
| Beg. Inventory | ||||||||||||
| End Inventory | ||||||||||||
| Setup Cost | ||||||||||||
| Holding Cost | ||||||||||||
| Total Holding Cost |
Determine the average demand for the 12 weeks available.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
