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A producer with one product has estimated the following demand for the next 10 weeks: Week 12345678910 Requirement 12 14 26 32 38 42
A producer with one product has estimated the following demand for the next 10 weeks: Week 12345678910 Requirement 12 14 26 32 38 42 42 45 76 112 Assume furthermore that the producer faces a set-up cost (K) equal to 132 kr. each time production takes place and a storage costs (h) of 0.60 kr. per unit per week. a. Find the cost of the two extreme strategies Lot-for-lot (produce exactly what is needed in each period) and Produce-once (produce everything needed in the first period).
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