Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Operations Manager of PT Radio Gaga is calculating production costs
a telecommunication radio taking into account the following needs:
i. Week 1 : 20 units
ii. Week 2 : 36 units
iii. Week 3 : 46 units
iv. Week 4 : 45 units
v. Week 5 : 20 units
vi. Week 6 : 26 units
It is known that there is inventory from the previous week as many as 20 units. Assuming 52
week per year, lead time booking for 1 week, setup cost of $40 and
holding cost of $0.75 per week, you are required to assist the Operations Manager of PT
Radio Gaga to calculate the estimated production cost as follows:
a. Calculate EoQ
b. Create a 6-week MRP Lot Sizing Table with EoQ method
c. Calculate Total Production Cost using EoQ method
d. Create a 6-week MRP Lot Sizing Table using the Lot method
for Lot
e. Calculate Total Production cost by using Lot for Lot method
F. Which method will PT Radio Gaga's Operations Manager take?
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