FCC Company has estimated the demands for a particular part as follows: Period 1 34 5...

Transcribed Image Text:

FCC Company has estimated the demands for a particular part as follows: Period 1 34 5 6 10 42 46 2 Demand (units) 44 2 2 The cost per setup (order) is $50, and the inventory holding cost is $5 per unit per period. There are currently no parts available in inventory. The company wishes to determine when and how much to order over the next 6 periods. (a) For each of the following methods, develop the ordering plan, determine the inventory levels at the end of each month and calculate the sum of the associated total setup and inventory holding costs. • The Silver-Meal method • Least unit cost Part period balancing (b) Apply the Wagner-Whitin algorithm to determine the optimal order quantities and inventory levels in each period, and • the minimum sum of the ordering and inventory carrying costs. FCC Company has estimated the demands for a particular part as follows: Period 1 34 5 6 10 42 46 2 Demand (units) 44 2 2 The cost per setup (order) is $50, and the inventory holding cost is $5 per unit per period. There are currently no parts available in inventory. The company wishes to determine when and how much to order over the next 6 periods. (a) For each of the following methods, develop the ordering plan, determine the inventory levels at the end of each month and calculate the sum of the associated total setup and inventory holding costs. • The Silver-Meal method • Least unit cost Part period balancing (b) Apply the Wagner-Whitin algorithm to determine the optimal order quantities and inventory levels in each period, and • the minimum sum of the ordering and inventory carrying costs.

Answer rating: 100% (QA)

simple adjustment that is slightly increase the period of time for the third replenishment from T 32... View the full answer