Question: Consider two items ordered jointly. Fixed ordering cost K = $500 for each shipment (a combined shipment if ordered jointly). Weekly demand of each product
Consider two items ordered jointly. Fixed ordering cost K = $500 for each shipment (a combined shipment if ordered jointly). Weekly demand of each product is D1=100 and D2 =150, respectively. Inventory holding cost per unit per week is h1 = $1 and h2 = $2 respectively. Consider 52 weeks in a year. If the two products are ordered jointly (i) once a week, or (ii) once every two weeks, compute the order quantity for each product and the total annual cost of the two products (including fixed ordering and holding cost) in each case. [The same example with the two products ordered separately was covered in Topic 4 in class]
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