Question: Purchasing in logistics - Wagner - Within dynamic model You must make a decision about an article purchasing in your supplier. Demand in your firm
Purchasing in logistics WagnerWithin dynamic model
You must make a decision about an article purchasing in your supplier. Demand in your firm for this supply changes in periods months but is known table Data on cost elements are the following: ordering cost is unit price in purchasing is monthly inventory holding cost rate is of price. According to the order, the supply increases inventory nearly immediately without a delay at the beginning of the month and it should allow fulfilling a demand of this period. Initial inventory is Determine plan of monthly orders in your supplier table
Table
Table
tableMonthPeriod,DemandJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotal
tablePeriodInitial stock,Demand,Order,Final stock,Total costTotal
Hint: To make ordering decisions calculate the critical point for ordering decisions.
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