Question: Consider a company facing a demand pattern and costs as follows: Month January February March April May June July August September October November December
Consider a company facing a demand pattern and costs as follows: Month January February March April May June July August September October November December Sequential Number Requirements (Units) 1 2 3 4 5 6 7 12 8 11 9 10 Total 110 20 40 120 60 30 20 30 80 120 130 40 800 A $25.00 r (per month) 0.05$/$ (carrying costs are very high in this industry) $4.00 V Using a "3-month" decision rule, the replenishment schedule and associated costs are as follows: Month Starting inventory 1 2 3 0 150 110 Replenishment 170 0 Requirements 4 5 6 0 90 30 7 0 110 80 210 0 0 130 8 20 40 110 120 60 Ending inventory 150 110 0 90 30 0 110 9 10 11 12 Total 0 290 30 20 30 80 120 130 40 0 170 40 0 0 800 800 80 0 170 40 0 780 Total replenishment costs $100.00 Total carrying costs $156.00 Total replenishment + carrying $256.00 a. Construct a replenishment schedule and calculate the associated costs using the fixed EOQ method. b. Repeat using the Wagner-Whitin algorithm. c. Repeat using the Silver-Meal heuristic. d. Repeat using the LUC method. e. Repeat using the PPB method. f. Repeat using the POQ method. Consider a company facing a demand pattern and costs as follows: Month January February March April May June July August September October November December Sequential Number Requirements (Units) 1 2 3 4 5 6 7 12 8 11 9 10 Total 110 20 40 120 60 30 20 30 80 120 130 40 800 A $25.00 r (per month) 0.05$/$ (carrying costs are very high in this industry) $4.00 V Using a "3-month" decision rule, the replenishment schedule and associated costs are as follows: Month Starting inventory 1 2 3 0 150 110 Replenishment 170 0 Requirements 4 5 6 0 90 30 7 0 110 80 210 0 0 130 8 20 40 110 120 60 Ending inventory 150 110 0 90 30 0 110 9 10 11 12 Total 0 290 30 20 30 80 120 130 40 0 170 40 0 0 800 800 80 0 170 40 0 780 Total replenishment costs $100.00 Total carrying costs $156.00 Total replenishment + carrying $256.00 a. Construct a replenishment schedule and calculate the associated costs using the fixed EOQ method. b. Repeat using the Wagner-Whitin algorithm. c. Repeat using the Silver-Meal heuristic. d. Repeat using the LUC method. e. Repeat using the PPB method. f. Repeat using the POQ method.
Step by Step Solution
3.44 Rating (151 Votes )
There are 3 Steps involved in it
To calculate the replenishment schedule and associated costs using different inventory management methods lets go through each method step by step a Fixed EOQ Method The Economic Order Quantity EOQ is ... View full answer
Get step-by-step solutions from verified subject matter experts
Study Help