Question: Full Throttle orders a key part from an external supplier and needs to determine the optimum ordering plan for the next 5 weeks. The parts
Full Throttle orders a key part from an external supplier and needs to determine the optimum ordering plan for the next 5 weeks. The parts are ordered in bins that contain 200 parts per bin. They can order up to 4 bins per week. The planning team estimated the demand of parts of the next 5 weeks and the supplier gave them the following cost per bin for the next 5 weeks. Week 1 2 3 4 5 Parts Demanded 750 425 300 575 700 Cost per bin $2,000 $1,670 $1,840 $2,190 $1,680 They currently do not have any parts on hand and will incur a carrying cost of $7.50 per part based on average inventory. Develop an Excel model and solve using Solver to find their optimum ordering strategy.
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