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Petro North is a gasoline distributer who is required to produce gallons of gasoline for many gas stations. The communication is done is 8 week
Petro North is a gasoline distributer who is required to produce gallons of gasoline for many gas stations. The communication is done is 8 week increments because there is often seasonality in the demand for gasoline that needs to be considered so that the distributor is able to produce enough gasoline. Petro North has received an 8 week forecast that starts on February 1 for one of the gas stations that it supplies. The weekly demand, Dt. for gasoline is given in the table below. The acquisition cost, Ar, is given as well and represents the average cost to transport the raw materials, and run a batch of oil through the refinery. The holding cost is estimated to be $0.02 per gallon per period and is also provided in the table T 1 2 3 4 5 5 6 7 8 D 120,000 80.000 90,000 125.000 90,000 175,000 100,000 165,000 At $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 Text $3,000 $3.000 h $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 Use the Wagner-Whitin algorithm to compute the "optimal" 8-week production schedule for gasoline for this gas station. In the table below, enter the gallons of gasoline to be produced each week. Enter O if no production is needed. 2 3 4 4 5 6 7 8 Week 1 Gallons produced What is the total cost for the 8-week period? (Note: This excludes the cost of materials which are not provided in the question.) [ Petro North is a gasoline distributer who is required to produce gallons of gasoline for many gas stations. The communication is done is 8 week increments because there is often seasonality in the demand for gasoline that needs to be considered so that the distributor is able to produce enough gasoline. Petro North has received an 8 week forecast that starts on February 1 for one of the gas stations that it supplies. The weekly demand, Dt. for gasoline is given in the table below. The acquisition cost, Ar, is given as well and represents the average cost to transport the raw materials, and run a batch of oil through the refinery. The holding cost is estimated to be $0.02 per gallon per period and is also provided in the table T 1 2 3 4 5 5 6 7 8 D 120,000 80.000 90,000 125.000 90,000 175,000 100,000 165,000 At $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 Text $3,000 $3.000 h $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 Use the Wagner-Whitin algorithm to compute the "optimal" 8-week production schedule for gasoline for this gas station. In the table below, enter the gallons of gasoline to be produced each week. Enter O if no production is needed. 2 3 4 4 5 6 7 8 Week 1 Gallons produced What is the total cost for the 8-week period? (Note: This excludes the cost of materials which are not provided in the question.) [
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