Question: John applying the knowledge obtained, he has identified a more reliant/cheaper/better way to put together a product component Component x, which is in demand by

John applying the knowledge obtained, he has

John applying the knowledge obtained, he has identified a more reliant/cheaper/better way to put together a product component "Component x", which is in demand by X (an emergent private space companyMohn has agreed to supply X. Since X deals with NASA and the Department of Defense, demand for "Component X is known for the next four months. Jorge's manufacturer only ships once a month and the cost is given in the table below. They can ship any amount since "Component X" is small. Currently, Jorge is only concerned on minimizing the logistics costs, but the weather makes shipping/storage in the winter months more expensive, for reasons that are a trade secret Instead of dealing with an increasing monthly shipping cost, Jorge thinks he can store future demand in a warehouse, at a cost per unit. John was able to secure a warehouse next fall, where he can store the demand of "Component x" for future months. Unfortunately, it also has increasing per unit storage cost. For example, in September, he can just ship September's demand, or ship September and October's demand, delivering September's demand, and holding October's demand for 1 month, at the per unit cost of $10 (September cost), and so on. The logistical information is as follows: Period Unit Demand Storage $/unit Shipping cost Sept 25 10 750 Oct 35 20 1000 Nov 20 30 1250 Dec 45 40 1500 Determine the optimal logistics plan (shipping/storage) of each month for "Component X

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!