Question: ( 2 5 points ) A decision maker wants to find an order plan for the next 8 months using Silver - Meal Heuristic method.

(25 points)
A decision maker wants to find an order plan for the next 8 months using Silver-Meal Heuristic method. Through the application of the method, he obtains average per period costs (AC) which are shown in the following graphic. Note that, the first iteration starts in month 1, continued in month 2 since average perperiod cost is less than the previous one )(80 and ends in month 3 when average per-period cost exceeds the previous one )(55. Then, the second iteration starts from month 3. Likewise, the second iteration is stopped in month 6 and the third iteration starts from month 6 and stopped in month 8. Let inventory holding cost be $1 per unit per month. First month's demand is 60 units. Assume there is no inventory at the beginning of month 1.
a)Find monthly demands.
b) Using the related data from the graphic, find the resulting order policy of Silver-Meal Heuristic (when to order and how much to order).
 (25 points) A decision maker wants to find an order plan

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