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Initially, assume that Phil wants to minimize his inventory requirements. Assume that each order will be only for what is required for a single period.
Initially, assume that Phil wants to minimize his inventory requirements. Assume that each order will be only for what is required for a single period. Using the following forms, calculate the net requirements and planned order releases for the gear boxes and input shafts. Assume that lot sizing is done using lotforlot.
Phil would like to consider the costs that his accountants are currently using for inventory carrying and setup for the gear boxes and input shafts. These costs are as follows:
Part
Cost
Gear Box
Setup $order
Inventory carrying cost $unitweek
Input Shaft
Setup $order
Inventory carrying cost $unitweek
Given the cost structure, evaluate the cost of the schedule from Assume inventory is valued at the end of each week.
Find a better schedule by reducing the number of orders and carrying some inventory. What are the cost savings with this new schedule?
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