Question: For the example presented in Problem 6 (Page 448), assume that the setup cost for both components A and B is $100 and that the

For the example presented in Problem 6 (Page 448), assume that the setup cost for both components A and B is $100 and that the holding costs are respectively $0.15 and $0.25 per component per week.

  • a) Using the SilverMeal algorithm,
    • determine the planned order releases for both components A and B and
    • the resulting gross requirements schedules for components C, D, and E.
  • b) After determining the resulting gross requirement schedule for component C in the previous sub-question, assume that the setup cost for C is $200 and the holding cost is $0.20 per component per week. Using the Least Unit Cost algorithm, determine the planned order release for component C.

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