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.

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