Question: ( Inventory Management - Part 1 ) FCC Cafeteria, which is a fast lunch spot in ankaya University campus, purchases several basic cooking ingredients from
Inventory Management Part FCC Cafeteria, which is a fast lunch spot in ankaya University campus, purchases several basic cooking ingredients from a supplier. The annual usage demand purchasing cost, and setup order cost of these ingredients are given in the table below. The inventory carrying rate is per unit per year.
tableIngredientABCAnnual Demand in unitsSetup Cost $ orderPurchasing Cost $ unit
a Assume that all ingredients are ordered independently. What is the total inventory carrying cost of all ingredients when all ingredients are optimally ordered?
b The cafeteria management wants to order all ingredients in each cycle, which has a fixed common length for all ingredients. What is the optimal length of this cycle time?
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c Assume that all ingredients are jointly ordered from a supplier. The cafeteria management wants to order all ingredients in each cycle, which has a fixed common length for all ingredients. The major setup order cost associated with a group of ingredients is $ per order, and the minor ordering cost of each ingredient is as given in the table above. Calculate this common cycle time and the total annual setup order cost when all ingredients are optimally ordered?
d Assume that all ingredients are jointly ordered from a supplier, and all ingredients have varying order cycles. The major setup order cost associated with a group of ingredients is $ per order, and the minor ordering cost of each ingredient is as given in the table above. What is the ordering frequency for the ingredient ie if you use the heuristic algorithm discussed in the lecture?
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