Please try to solve it within 1 hour 1. A manufacturing facility orders high-strength bolts from an outside supplier. The demand forbolts is high, since they are used in a variety of end products manufactured at the facility.Estimated demand (in thousands) over the next 10 weeks is:Week23457810Demand 2234321284454167630The bolts cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent perweek. The fixed order cost is estimated to be $200. (Hint: Express h as the holding cost per thousandunits.)a. What ordering policy is recommended by the Silver-Meal heuristic?b. What ordering policy is recommended by the part period balancing heuristic?c. What ordering policy is recommended by the least unit cost heuristic?d. Which method resulted in the lowest-cost policy for this problem?

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Answered: 1. A manufacturing facility orders…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Jam costs $10/jar, requires a 6mo. lead time, and will sell for $35/jar. If you stock out, you'll face a $25/jar loss of goodwill. Placing an order costs $50, and money that is tied up in capital is assumed to have a 20% interest rate for calculating holding costs. During the 6-mo replenishment time, he sells ~100 jars, but with substantial variation. Estimates are a standard deviation of demand during each 6-mo period of 25 jars. Assume demand is described by a normal distribution. How should the Jam be ordered?
The economic order quantity of Geo Co. is determined to be 450 units and it sells its only product for P5 each. Every time the company orders, it incurs P50. Holding cost is P10. It takes 3 days to make and receive an order. How much sales should Geo Co. for this economic order quantity to be plausible? (Using 360 day per year)
I need a detailed explanation on how to solve this problem: A paint shop implements an inventory policy on its stock of white paint, which costs the store $6 per can. Monthly demand for cans of white paint is normal with mean 28 and standard deviation 8. The replenishment lead time is 14 weeks. Excess demand is backordered, but costs $10 per back ordered can in labor and loss of goodwill. There is a fixed cost of $15 per order, and the holding cost is based on 30% interest rate per annum. In your computations, assume 4 weeks per month. - Write down the model name and parameters. - What are the optimal lot size and reorder points for white paint (include the formulas)? - What is the optimal safety stock (include the formula)? *** Suppose the paint shop from the above problem adopts a service level policy. - What are the optimal lot size and reorder points for white paint, such that 90% of the cycles are filled without backordering (include all formulas)? - What is the fill rate…
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