Question: A component used in a manufacturing facility is ordered from an outside supplier. The time - phased net requirements for the component over the next

A component used in a manufacturing facility is ordered from an outside supplier. The
time-phased net requirements for the component over the next 7 weeks are 5,25,17,15,
25,13, and 27. Assume a holding cost of $1.5 per week and a setup cost of $42.
1) Determine the order policy for this item over the next 7 weeks based on Silver-Meal
heuristic.
2) Assume there is a capacity constraint to the lot sizing
a. Suppose that the maximum order size is 15 per week. Does there exist a feasible
solution?
b. Suppose that the maximum order size is 25 per week. Use lot-shifting technique to
obtain a feasible solution (without using holding and setup cost).
c. Suppose that the maximum order size is 25 per week. Improve the solution
obtained in Part (b)

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