Problem two Suppose that the buttons used in the calculators cost $0.02 each and the company...

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Problem two Suppose that the buttons used in the calculators cost $0.02 each and the company estimates a fixed cost of $12 for placing and receiving orders of the buttons from an outside supplier. Assume that holding costs are based on a 24 percent annual interest rate and that there are 48 weeks to a year. Using the gross requirements schedule for the buttons determined in table below, week 1 2 3 4 5 6 7 8 9 10 Gross 48 48 32 14 14 12 88 56 72 24 request (All units expressed in thousands) The gross requirements schedule in week 4 and 5 of the MPS is given 14 units. Hint: For convenience, multiply h by 1000 and divide each requirement by 1000. Hence, h= 0.1 and r= (48, 48, 32, 14, 14, 12, 88, 56, 72, 24). a) What order policy does the Silver-Meal heuristic recommend for the buttons? (20 points) b) Solve Problem two using least unit cost. Compare the costs of the resulting solution to the cost of the solution obtained by using the Silver-Meal heuristic. (15 points) Problem two Suppose that the buttons used in the calculators cost $0.02 each and the company estimates a fixed cost of $12 for placing and receiving orders of the buttons from an outside supplier. Assume that holding costs are based on a 24 percent annual interest rate and that there are 48 weeks to a year. Using the gross requirements schedule for the buttons determined in table below, week 1 2 3 4 5 6 7 8 9 10 Gross 48 48 32 14 14 12 88 56 72 24 request (All units expressed in thousands) The gross requirements schedule in week 4 and 5 of the MPS is given 14 units. Hint: For convenience, multiply h by 1000 and divide each requirement by 1000. Hence, h= 0.1 and r= (48, 48, 32, 14, 14, 12, 88, 56, 72, 24). a) What order policy does the Silver-Meal heuristic recommend for the buttons? (20 points) b) Solve Problem two using least unit cost. Compare the costs of the resulting solution to the cost of the solution obtained by using the Silver-Meal heuristic. (15 points)