A firm wants to compute its ordering and carrying cost of inventory based on the plan shown belows: Lead time(week): Setup costs(per order): Holding costs (per week): Project on hand week 0 1 $220 $4.00 96 (this is weekly) Develop an ordering plan and costs for Speaker Kits, using these techniques: EOQ question: if one order cannot cover the net requirement, you must order double or triple volume and it must be an integer - round up, or round down. E.g. 1.445=2; 1.444=1 (decimal place 3) POQ question: you must postpone your order if net requirements for next week is 0. When ordering, you must wait till when you absolutely need to order (if you have no net requirements, then no order needed). 1 see a net requirement in particular week, then that is = one period. You must show your work. First week's "projected on hand" has no holding cost. Pay attention to 0, if not properly input, you do not receive a full A: Lot-for-lot 3% Week Gross requirements Projected on hand Net requirements Planned order receipts Planned order releases B: EOQ 3% Week Gross requirements Projected on hand Net requirements Planned order receipts Planned order releases C: POQ 3% Week Gross requirements Projected on hand Net requirements Planned order receipts Planned order releases 0 1 2 3 4 5 6 7 8 9 10 11 12 13 60 23 20 85 0 45 93 43 0 27 51 39 Weekly demand Yearly demand 0 Total holding cost $0.00 Total ordering cos Total cost: $0.00 $0.00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 EOQ amount: 60 23 20 85 0 45 93 43 0 27 51 39 EOQ amount: Roundup? Roundown? Total holding cost $0.00 Total ordering cos Total cost: $0.00 $0.00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 60 23 20 85 0 45 93 43 0 27 51 39 #period per order POQ Total holding cost Roundup? Roundown? $0.00 Total ordering cos $0.00 Total cost: $0.00
A firm wants to compute its ordering and carrying cost of inventory based on the plan shown belows: Lead time(week): Setup costs(per order): Holding costs (per week): Project on hand week 0 1 $220 $4.00 96 (this is weekly) Develop an ordering plan and costs for Speaker Kits, using these techniques: EOQ question: if one order cannot cover the net requirement, you must order double or triple volume and it must be an integer - round up, or round down. E.g. 1.445=2; 1.444=1 (decimal place 3) POQ question: you must postpone your order if net requirements for next week is 0. When ordering, you must wait till when you absolutely need to order (if you have no net requirements, then no order needed). 1 see a net requirement in particular week, then that is = one period. You must show your work. First week's "projected on hand" has no holding cost. Pay attention to 0, if not properly input, you do not receive a full A: Lot-for-lot 3% Week Gross requirements Projected on hand Net requirements Planned order receipts Planned order releases B: EOQ 3% Week Gross requirements Projected on hand Net requirements Planned order receipts Planned order releases C: POQ 3% Week Gross requirements Projected on hand Net requirements Planned order receipts Planned order releases 0 1 2 3 4 5 6 7 8 9 10 11 12 13 60 23 20 85 0 45 93 43 0 27 51 39 Weekly demand Yearly demand 0 Total holding cost $0.00 Total ordering cos Total cost: $0.00 $0.00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 EOQ amount: 60 23 20 85 0 45 93 43 0 27 51 39 EOQ amount: Roundup? Roundown? Total holding cost $0.00 Total ordering cos Total cost: $0.00 $0.00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 60 23 20 85 0 45 93 43 0 27 51 39 #period per order POQ Total holding cost Roundup? Roundown? $0.00 Total ordering cos $0.00 Total cost: $0.00
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Help me with this practice problem. Please provide pictures of you doing the problem so I can better understand how to complete it. Please show equations and be clear. Thank you so much,
Transcribed Image Text:A firm wants to compute its ordering and
carrying cost of inventory based on the plan shown belows:
Lead time(week):
Setup costs(per order):
Holding costs (per week):
Project on hand week 0
1
$220
$4.00
96
(this is weekly)
Develop an ordering plan and costs for Speaker Kits, using these techniques:
EOQ question: if one order cannot cover the net requirement, you must order double or triple volume and it must be an integer - round up, or round down. E.g. 1.445=2; 1.444=1 (decimal place 3)
POQ question: you must postpone your order if net requirements for next week is 0. When ordering, you must wait till when you absolutely need to order (if you have no net requirements, then no order needed).
1 see a net requirement in particular week, then that is = one period. You must show your work. First week's "projected on hand" has no holding cost. Pay attention to 0, if not properly input, you do not receive a full
A: Lot-for-lot 3%
Week
Gross requirements
Projected on hand
Net requirements
Planned order receipts
Planned order releases
B: EOQ 3%
Week
Gross requirements
Projected on hand
Net requirements
Planned order receipts
Planned order releases
C: POQ 3%
Week
Gross requirements
Projected on hand
Net requirements
Planned order receipts
Planned order releases
0
1
2
3
4
5
6
7
8
9
10
11
12
13
60
23
20
85
0
45
93
43
0
27
51
39
Weekly demand
Yearly demand
0
Total holding cost
$0.00
Total ordering cos
Total cost:
$0.00
$0.00
0
1
2
3
4
5
6
7
8
9
10
11
12
13
EOQ amount:
60
23
20
85
0
45
93
43
0
27
51
39
EOQ amount:
Roundup?
Roundown?
Total holding cost
$0.00
Total ordering cos
Total cost:
$0.00
$0.00
0
1
2
3
4
5
6
7
8
9
10
11
12
13
60
23
20
85
0
45
93
43
0
27
51
39
#period per order
POQ
Total holding cost
Roundup?
Roundown?
$0.00
Total ordering cos
$0.00
Total cost:
$0.00
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