2. RoadHog Inc. is a small manufacturer of motorcycle accessories. It makes muffler with fins on a line that is also used to make a variety of other products. Because it is costly to set up the line to produce them in batches, RoadHog has an incentive them in batches. However, while customer demand is known over a 6-planning horizon, it is not necessarily constant from week to week. The unit cost, fixed setup cost and monthly holding cost are given in the table. Data for the RoadHog Dynamic Lot Sizing Week 1 2 3 4 5 6 Demand 30 50 60 25 20 40 Setup Cost 150 150 150 150 150 150 Holding cost 3 3 3 3 3 3 a. Find the production plan and the total cost for lot for lot scheduling. b. Find the production plan and the total cost for lot for the fixed order quantity (FOQ = 100) scheduling. c. Find the production plan and the total cost for the fixed order period scheduling (Use FOP = 3 weeks). d. Which strategy is the best?
2. RoadHog Inc. is a small manufacturer of motorcycle accessories. It makes muffler with fins on a line
that is also used to make a variety of other products. Because it is costly to set up the line to produce them
in batches, RoadHog has an incentive them in batches. However, while customer demand is known over a
6-planning horizon, it is not necessarily constant from week to week. The unit cost, fixed setup cost and
monthly holding cost are given in the table.
Data for the RoadHog Dynamic Lot Sizing
Week 1 2 3 4 5 6
Demand 30 50 60 25 20 40
Setup Cost 150 150 150 150 150 150
Holding cost 3 3 3 3 3 3
a. Find the production plan and the total cost for lot for lot
b. Find the production plan and the total cost for lot for the fixed order quantity (FOQ = 100)
scheduling.
c. Find the production plan and the total cost for the fixed order period scheduling (Use FOP = 3
weeks).
d. Which strategy is the best?
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