Question: 3 . 2 2 ( EPQ for Laundry ) A restaurant uses 8 0 cloth napkins per hour. The napkins are washed by hand at
EPQ for Laundry A restaurant uses cloth napkins per hour. The napkins are washed by hand at a rate of per hour. Each time the laundry process is started, the restaurant incurs a fixed cost of $ Napkins in inventory incur a holding cost of $ per napkin per hour. Stockouts are not allowed. How many napkins should the restaurant have in circulation?
WagnerWhitin for Aircraft Engines The Pratt & Whitin Company, which manufactures aircraft engines, needs to decide how many units of a particular bolt to order in order to build engines over the next months. Orders for engines are placed over a year in advance, so the company knows its nearterm demand exactly; in particular, the number of engines to produce in the next months will be and in months through respectively. Each engine requires a single bolt. Orders for bolts incur a fixed cost of $ and bolts held in inventory incur a holding cost of $ per bolt per month. Find the optimal order quantities in each period and the optimal total cost.
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