For the data provided in problem 19, calculate the mean weekly requirements, and round to the nearest
Question:
For the data provided in problem 19, calculate the mean weekly requirements, and round to the nearest integer. Use this number as a uniform weekly requirement, and use the order cost and holding cost that were given in problem 19.
a. From the EOQ formula determine the optimal order size for the item.
b. Using the part-period algorithm, compute the sizes of orders that should be received with the same series of uniform requirements.
c. Compare the results you obtained in parts a and } and explain any differences.
d. The average requirement per period in problem 19 is 117 units. Compare the number of periods that an order covers in the solution to problem 19 with the number of periods in the solution to part 6 of this problem.
Step by Step Answer:
Operations Management Providing Value In Goods And Services
ISBN: 9780030262074
3rd Edition
Authors: Dilworth, James B