Question: The weekly demand for a certain product is shown in the following table. Since the production conditions are very dynamic from week to week, the
The weekly demand for a certain product is shown in the following table. Since the production conditions are very dynamic from week to week, the unit cost of production is variable and is also shown in the table.
| Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| Demand production | 385 | 1815 | 440 | 3685 | 4400 | 3575 | 2530 | 1551 | 3630 | 4345 | 6600 | 1364 |
| Cost ($/u) | 1.0 | 1.0 | 1.1 | 1.3 | 1.3 | 1.3 | 1.7 | 1.4 | 1.3 | 1.2 | 1.0 | 1.0 |
Enlistment cost is $ 300 per order, inventory carrying cost is 1% weekly. Evaluate the following policies:
a) Produce exactly what is of the week
b) Produce the requirements of three consecutive periods
c) Produce what is established by the EOQ calculated based on the average demand and the average price, and rounded to the nearest integer.
d) That established by the time between orders EOQ/ |D , rounded to the nearest integer.
e) The optimal policy based on the mixed integer linear programming model.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
