A manufacturing system faces dynamic demand, which results in lumpy demand for a component in a product, which is as follows: Period Demand 1 30 2 20 3 50 4 10 5 0 6 40 7 8 60 30 9 25 Information from warehouse, there is an initial stock 60 components and the component safety stock is 10 units. Ordering cost of the component is IDR. 5000,- while the carrying cost is IDR. 150,- per unit per period. The unit purchase price is IDR. 7000,- and there is an offer from supplier a unit purchase price discount at IDR. 200,- if the order quantity is more than 100 units. Arrange a plan to order from the supplier using Part Period Balancing and Least Unit Cost method. Ordering lead time of the components is 1 period. Calculate the total cost of each method.

A manufacturing system faces dynamic demand, which results in lumpy demand for a component in a product, which is as follows: Period Demand 1 30 2 20 3 50 4 10 5 0 6 40 7 8 60 30 9 25 Information from warehouse, there is an initial stock 60 components and the component safety stock is 10 units. Ordering cost of the component is IDR. 5000,- while the carrying cost is IDR. 150,- per unit per period. The unit purchase price is IDR. 7000,- and there is an offer from supplier a unit purchase price discount at IDR. 200,- if the order quantity is more than 100 units. Arrange a plan to order from the supplier using Part Period Balancing and Least Unit Cost method. Ordering lead time of the components is 1 period. Calculate the total cost of each method.

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter2: Systems Of Linear Equations

Section2.4: Applications

Problem 28EQ

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Question

Arrange a plan to order from the supplier using Part Period Balancing and Least Unit Cost method. Ordering lead time of the components is 1 period. Then Calculate the total cost of each method.

A manufacturing system faces dynamic demand, which results in lumpy demand for a
component in a product, which is as follows:
Period
Demand
1
30
2
20
3
50
4
10
5
0
6
40
7
60
8
30
9
25
Information from warehouse, there is an initial stock 60 components and the component
safety stock is 10 units. Ordering cost of the component is IDR. 5000,- while the carrying
cost is IDR. 150,- per unit per period. The unit purchase price is IDR. 7000,- and there is
an offer from supplier a unit purchase price discount at IDR. 200,- if the order quantity is
more than 100 units. Arrange a plan to order from the supplier using Part Period
Balancing and Least Unit Cost method. Ordering lead time of the components is 1 period.
Calculate the total cost of each method.

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