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Consider a two-stage process where Aw-$30, AR-$20, vw-$2/unit, v-$7/unit, and -0.05 $/$/month. The requirements at the retailer level are given in the table below: Month
Consider a two-stage process where Aw-$30, AR-$20, vw-$2/unit, v-$7/unit, and -0.05 $/$/month. The requirements at the retailer level are given in the table below: Month 1 2 3 Demand 10 60 4 5 6 20 140 90 40 Use the sequential, modified Silver-Meal approach to determine the patterns of replenishments. To be specific, a. First use the Silver-Meal at the retailer level with adjusted fixed cost and adjusted variable cost to get the pattern of replenishments at the retailer level. (40 points) b. Replenishments you found in part (a) become the requirements pattern at the warehouse level. Use these to find the replenishments at the warehouse level. (40 points) c. Finally, calculate the total replenishment and inventory holding costs for the retailer and warehouse. (20 points)
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