A manufacturing company faces an uncertain demand for its product at an average of 10,000 units per year. Selling price of the product is IDR. 1.500.000,-. The cost of holding per unit per year is estimated at IDR 350.000,-. Profit of the product is IDR. 300,000,- per unit. If the company could not meet the demand, then the profit will be lost. Ordering lead time is approximately 7 days, and the demand during lead time follows a uniform distribution of 30 to 200 units. a.Determine order quantity and reorder points to minimise the total cost. b. Determine the review period and maximum inventory to minimise the total cost C. Calculate the total cost for item a and b based on the your iteration on the data
A manufacturing company faces an uncertain demand for its product at an average of 10,000 units per year. Selling price of the product is IDR. 1.500.000,-. The cost of holding per unit per year is estimated at IDR 350.000,-. Profit of the product is IDR. 300,000,- per unit. If the company could not meet the demand, then the profit will be lost. Ordering lead time is approximately 7 days, and the demand during lead time follows a uniform distribution of 30 to 200 units. a.Determine order quantity and reorder points to minimise the total cost. b. Determine the review period and maximum inventory to minimise the total cost C. Calculate the total cost for item a and b based on the your iteration on the data
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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Question
A manufacturing company faces an uncertain demand for its product at an average of
10,000 units per year. Selling price of the product is IDR. 1.500.000,-. The cost of holding
per unit per year is estimated at IDR 350.000,-. Profit of the product is IDR. 300,000,- per
unit. If the company could not meet the demand, then the profit will be lost. Ordering
lead time is approximately 7 days, and the demand during lead time follows a uniform
distribution of 30 to 200 units.
a.Determine order quantity and reorder points to minimise the total cost.
b. Determine the review
period and maximum inventory to minimise the total cost
C. Calculate the total cost for item a and b based on the your iteration on the data
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