Project 4 Prompt

- inventory/warehouse/replenishment/solver (not excel)

- This solution needs to have defined variables, 1 objective function, constraints

The attached spreadsheet contains demand data for ten weeks. You are to solve the following replenishment problem. Decide how much to order each week to minimize the total cost, which includes cost of purchasing and holding cost. In this new variant of the problem, we can hold inventory at our supplier as well as our own warehouse.

Inventory held at the end of the week at the supplier and at our warehouse incurs a holding cost per unit. There is a minimum amount of inventory that must be on hand each week at the warehouse. If an order is placed in a period, the order amount must be at least the minimum order quantity (MOQ). When purchasing, there is a quantity discount, as shown in the spreadsheet.

Inventory can only be held at the supplier for a certain number of weeks. After that, the inventory is automatically shipped to the warehouse. If a shipment is made, it must be at least the minimum shipment quantity (MSQ).

The attached spreadsheet includes all of the data that you need as well as an example solution. (This example solution is not necessarily optimal. You need to find the optimal solution.

min order ty min shipment qty max number of weeks that inventory can be held at supplier Quantity discount schedule minimum order amount 5 5 20 price per unit $3 $1.00 30 $0.50 Order unit at Cost of Is order goods Holding cost - Holding cost - feasible Is shipment purchased warehouse supplier ? feasible? Week Demand amount 0 1 30 0 2 2 3 Shipment Inventory amount at Minimum Holding from inventory at warehouse inventory Holding cost per supplier to supplier at end of requireme cost per warehouse end of week week nt unit supplier 20 15 5 4.5 2. 0 5 0 2 10 15 0 0 2 0 15 0 2 8 17 0.9 2 0 13 0.6 2 0 9 0.6 2 0 5 0.6 2 0 1 0.6 2 0 0 0 0.15 2 0 4 0 6 5 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 10 $ 1 $ 45 $ - $ 30 $ $ 24 $ $ $ $ $ $ 10$ 10$ 30 $ 30$ 34 $ 26 $ 18$ 10$ 2 $ $ 4 6 6 7 4 - 8 4 - 9 4 10 1 TOTAL COST $ 269