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 - Wagner-Within 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 1). Data on cost elements are the following: ordering cost is co=125,-zt, unit price in purchasing is P=30,-zf, monthly inventory holding cost rate is r=2.5% 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 0. Determine plan of monthly orders in your supplier (table 2).
Table 1.
Table 2.
\table[[Month,Period,Demand],[January,1,20],[February,2,124],[March,3,24],[April,4,260],[May,5,308],[June,6,258],[July,7,176],[August,8,104],[September,9,248],[October,10,320],[November,11,476],[December,12,82],[Total,2400]]
\table[[Period,Initial stock,Demand,Order,Final stock,Total cost],[1,0,20,,,],[2,,124,,,],[3,,24,,,],[4,,260,,,],[5,,308,,,],[6,,258,,,],[7,,176,,,],[8,,104,,,],[9,,248,,,],[10,,320,,,],[11,,476,,,],[12,,82,,0,],[Total,2400,2400,,]]
Hint: To make ordering decisions calculate the critical point Qcp=cdch for ordering decisions.
Qcp=dots
 Purchasing in logistics - Wagner-Within dynamic model You must make a

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!