Question: 5 . You may use Excel to help solve this problem. An automobile dealership has customer orders for a VR 1 2 truck model for

5. You may use Excel to help solve this problem.
An automobile dealership has customer orders for a VR12 truck model for the next 11 weeks
(see table below). This automobile dealership wants to determine how many trucks to have
delivered each week. Any trucks delivered ahead of requirements must be held in inventory (on
the car lot) at a cost of $150/car/week. The dealership pays $32,500 for each VR12 truck and
sells it for $40,000. It costs the automobile dealership $2,000 to have a shipment of trucks sent.
Week 1234567891011
Requirement 10229812251528283
a) Using the Basic EOQ method, determine how many trucks the dealership should receive
each week. What is the fixed replenishment cost, inventory holding cost, and total cost
for this replenishment scheme?
b) Using the Silver-Meal method, determine how many trucks the dealership should receive
each week. What is the fixed replenishment cost, inventory holding cost, and total cost
for this replenishment scheme?
c) Using the Wagner-Whitin method, determine how many trucks the dealership should
receive each week. What is the fixed replenishment cost, inventory holding cost, and total
cost for this replenishment scheme?
d) Which method, Wagner-Whitin, Basic EOQ or Silver-Meal, would you recommend using
for this problem? Why

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