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Consider a company facing a demand pattern and costs as follows: Month Jan Feb Mar Apr Мay Jun Jul Aug Sep Oct Nov Dec Sequential number 1 3 4 5 7 8. 11 12 Total Requirements (units) 20 40 110 120 60 30 30 80 120 130 40 800 Given: Fixed ordering cost A = $25.00, carrying cost r (per month) = $0.05 (Carrying costs are very high in this industry) and unit variable cost v = $4.00. Using a "three-month" decision rule, the replenishment schedule and associated costs are as follows: Month Starting inventory Replenishment | 170 Requirements Ending inventory Total replenishment costs: $110.00 Total carrying costs: $156.00 Total replenishment + carrying: $256.00 1 2 3 4 6. 7 8 9. 10 11 12 Total 150 110 90 30 110 80 170 40 210 130 290 800 20 40 110 120 60 30 20 30 80 120 130 40 800 150 110 90 30 110 80 170 40 780 Construct a replenishment schedule and calculate the associated costs using the Fixed Economic Order Quantity method. 8| 의 20

Consider a company facing a demand pattern and costs as follows: Month Jan Feb Mar Apr Мay Jun Jul Aug Sep Oct Nov Dec Sequential number 1 3 4 5 7 8. 11 12 Total Requirements (units) 20 40 110 120 60 30 30 80 120 130 40 800 Given: Fixed ordering cost A = $25.00, carrying cost r (per month) = $0.05 (Carrying costs are very high in this industry) and unit variable cost v = $4.00. Using a "three-month" decision rule, the replenishment schedule and associated costs are as follows: Month Starting inventory Replenishment | 170 Requirements Ending inventory Total replenishment costs: $110.00 Total carrying costs: $156.00 Total replenishment + carrying: $256.00 1 2 3 4 6. 7 8 9. 10 11 12 Total 150 110 90 30 110 80 170 40 210 130 290 800 20 40 110 120 60 30 20 30 80 120 130 40 800 150 110 90 30 110 80 170 40 780 Construct a replenishment schedule and calculate the associated costs using the Fixed Economic Order Quantity method. 8| 의 20

Practical Management Science
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: Consider a company facing a demand pattern and costs as follows: Month Jan Feb Mar Apr Мay Jun Jul Aug Sep Oct Nov Dec Sequential number 1 3 4 6. 7 8. 9 10 11 12 Total Requirements (units) 20 40 110 120 60 30 30 80 120 130 40 800 Given: Fixed ordering cost A = $25.00, carrying cost r (per month) = $0.05 (Carrying costs are very high in this industry) and unit variable cost v = $4.00. Using a "three-month" decision rule, the replenishment schedule and associated costs are as follows: Month 1 3 4 5 | 7 8 9. 10 11 12 Total Starting inventory Replenishment | 170 Requirements Ending inventory Total replenishment costs: $110.00 Total carrying costs: $156.00 Total replenishment + carrying: $256.00 150 110 90 30 110 80 170 40 210 130 290 800 40 110 20 60 30 20 30 12 40 800 150 110 90 110 80 170 780 Construct a replenishment schedule and calculate the associated costs using the Fixed Economic Order Quantity method. 20
Transcribed Image Text:Question: Consider a company facing a demand pattern and costs as follows: Month Jan Feb Mar Apr Мay Jun Jul Aug Sep Oct Nov Dec Sequential number 1 3 4 6. 7 8. 9 10 11 12 Total Requirements (units) 20 40 110 120 60 30 30 80 120 130 40 800 Given: Fixed ordering cost A = $25.00, carrying cost r (per month) = $0.05 (Carrying costs are very high in this industry) and unit variable cost v = $4.00. Using a "three-month" decision rule, the replenishment schedule and associated costs are as follows: Month 1 3 4 5 | 7 8 9. 10 11 12 Total Starting inventory Replenishment | 170 Requirements Ending inventory Total replenishment costs: $110.00 Total carrying costs: $156.00 Total replenishment + carrying: $256.00 150 110 90 30 110 80 170 40 210 130 290 800 40 110 20 60 30 20 30 12 40 800 150 110 90 110 80 170 780 Construct a replenishment schedule and calculate the associated costs using the Fixed Economic Order Quantity method. 20
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