(Inventory Management - Part 2) An item has a unit purchase cost of $50, and an inventory-carrying rate per period of 0.02. The additional data for this product is given below: Period Demand (units) Fixed Cost (S/order) 75 100 2 0 110 3 65 100 Assuming no backordering is allowed, answer the followings: (a) Check whether the demand is lumpy or not. (b) Apply the following heuristics on the problem given above. (i) Period Order Quantity (ii) 4 5 40 90 105 100 Silver-Meal (iii) Part-Period Balancing (c) Which of the solutions obtained in part (b) do you select? (d) Draw a network diagram to illustrate the given lot sizing problem, and calculate the cost values for each are on the network. (e) Apply the Wagner-Whitin algorithm to determine the optimal order quantities, the optimal inventory levels, and the minimum sum of the ordering and inventory carrying costs.
(Inventory Management - Part 2) An item has a unit purchase cost of $50, and an inventory-carrying rate per period of 0.02. The additional data for this product is given below: Period Demand (units) Fixed Cost (S/order) 75 100 2 0 110 3 65 100 Assuming no backordering is allowed, answer the followings: (a) Check whether the demand is lumpy or not. (b) Apply the following heuristics on the problem given above. (i) Period Order Quantity (ii) 4 5 40 90 105 100 Silver-Meal (iii) Part-Period Balancing (c) Which of the solutions obtained in part (b) do you select? (d) Draw a network diagram to illustrate the given lot sizing problem, and calculate the cost values for each are on the network. (e) Apply the Wagner-Whitin algorithm to determine the optimal order quantities, the optimal inventory levels, and the minimum sum of the ordering and inventory carrying costs.
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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