Problem 3: (6.17/224 Silver et.al. (1998) Book)

Consider a company facing a demand pattern and costs as follows:

Month	Sequential number	Requirements (units)
January	1	350
February	2	200
March	3	0
April	4	150
May	5	500
June	6	600
July	7	450
August	8	350
September	9	200
October	10	0
November	11	150
December	12	200
	Total	3150

Given the fixed ordering cost A = $50, carrying cost r (per month) $1.05, unit variable cost v = $65.00/ unit.

a/ Construct a replenishment schedule and calculate the associated costs using the Fixed Economic Order Quantity method.

b/ Repeat using the Wagner Whitin algorithm.

c/ Repeat using the Silver Meal heuristic.

d/ Repeat using the Least Unit Cost method.

e/ Repeat using the Part period Balancing method.

f/ Repeat using the Period Ordering Quantity method.