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A component used in a manufacturing facility is ordered from an outside supplier. The time-phased net requirements for the component over the next 7 weeks
A component used in a manufacturing facility is ordered from an outside supplier. The time-phased net requirements for the component over the next 7 weeks are 5, 25, 17, 15, 25, 13, and 27. Assume a holding cost of $1.5 per week and a setup cost of $42. 1) Determine the order policy for this item over the next 7 weeks based on Silver-Meal heuristic. 2) Assume there is a capacity constraint to the lot sizing a. Suppose that the maximum order size is 15 per week. Does there exist a feasible solution? b. Suppose that the maximum order size is 25 per week. Use lot-shifting technique to obtain a feasible solution (without using holding and setup cost). c. Suppose that the maximum order size is 25 per week. Improve the solution obtained in Part (b)
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