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Please give the solution for 21 Here is problem 20 for reference 21. a. Based on the results of Problem 20, suggest an approximate lot-sizing
Please give the solution for 21
Here is problem 20 for reference
21. a. Based on the results of Problem 20, suggest an approximate lot-sizing technique. Under what circumstances would you expect this method to give good results? b. Use this method to solve Example 8A.2 (see Appendix 8-A). By what percentage does the resulting solution differ from the optimal? 20. A small manufacturing firm that produces a line of office furniture requires casters at a fairly constant rate of 75 per week. The MRP system assumes a six-week planning horizon. Assume that it costs \$266 to set up for production of the casters and the holding cost amounts to $1 per caster per week. a. Compute the EOQ and determine the number of periods of demand to which this corresponds by forming the ratio (EOQ)/(demand per period). Let T be 8.3 Incorporating Lot-Sizing Algorithms into the Explosion Calculus 455 this ratio rounded to the nearest integer. Determine the policy that produces casters once every T periods. b. Using backward dynamic programming with N=6 and r=(75,75,,75), find the optimal solution. (Refer to Appendix 8-A.) Does your answer agree with what you obtained in part (a)Step by Step Solution
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