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Lot sizing A producer with one product faces the following forecasted demand for the next 10 weeks: Assume furthermore that the producer faces a set-up

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Lot sizing A producer with one product faces the following forecasted demand for the next 10 weeks: Assume furthermore that the producer faces a set-up cost (K) equal to 132kr. each time production takes place and a storage costs (h) of 0.60kr. 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). b) Determine the lot sizes using the Silver-Meal heuristic. c) Determine the lot sizes using Part Period Balancing technique. d) Compare the results from the different techniques and comment the solutions. e) Assume now that production capacity in any period is limited to a maximum production amount of 100 . Create a feasible production plan with setups in periods 1,3,6,8 and 10 considering this restriction. What is the cost of this plan? What happens if the maximal production is less than 40 ? Lot sizing A producer with one product faces the following forecasted demand for the next 10 weeks: Assume furthermore that the producer faces a set-up cost (K) equal to 132kr. each time production takes place and a storage costs (h) of 0.60kr. 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). b) Determine the lot sizes using the Silver-Meal heuristic. c) Determine the lot sizes using Part Period Balancing technique. d) Compare the results from the different techniques and comment the solutions. e) Assume now that production capacity in any period is limited to a maximum production amount of 100 . Create a feasible production plan with setups in periods 1,3,6,8 and 10 considering this restriction. What is the cost of this plan? What happens if the maximal production is less than 40

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