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
You may use Excel to help solve this problem.
An automobile dealership has customer orders for a VR truck model for the next 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 $carweek The dealership pays $ for each VR truck and
sells it for $ It costs the automobile dealership $ to have a shipment of trucks sent.
Week
Requirement
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 SilverMeal 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 WagnerWhitin 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, WagnerWhitin, Basic EOQ or SilverMeal, would you recommend using
for this problem? Why?
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