a. Determine the planned order release for the motherboards in Problem 4 assuming that one uses the

Question:

a. Determine the planned order release for the motherboards in Problem 4 assuming that one uses the EOQ formula to schedule production. Use K  $180 and h  0.40.

b. Using the results from part (a), determine the gross requirements schedule for the DRAM chips, which are ordered from an outside supplier. The order cost is $25.00, and the holding cost is $0.01 per chip per week. What order schedule with the vendor results if the EOQ formula is used to determine the lot size?

c. Repeat the calculation of part

(b) for the add-in boards. Use the same value of the setup cost and a holding cost of 28 cents per board per week.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Production And Operations Analysis

ISBN: 9781478623069

7th Edition

Authors: Steven Nahmias, Tava Lennon Olsen

Question Posted: