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Develop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the following table*. Period 1 Gross requirements 30 Period Gross requirements Scheduled receipt Projected On-hand *Holding cost = $3.50/unit/week; setup cost = $150; lead time = 1 week; beginning inventory = 40. Develop a lot-for-lot solution (enter your responses as whole numbers). Net Requirements Planned Order receipt Planned Order release The total cost is $ 2 3 30 40 4 5 6 789 10 11 12 30 60 30 20 70 60 1 30 2 3 4 5 6 7 30 30 60 30 (enter your response as a whole number). 8 9 20 70 10 11 12 60

Develop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the following table*. Period 1 Gross requirements 30 Period Gross requirements Scheduled receipt Projected On-hand *Holding cost = $3.50/unit/week; setup cost = $150; lead time = 1 week; beginning inventory = 40. Develop a lot-for-lot solution (enter your responses as whole numbers). Net Requirements Planned Order receipt Planned Order release The total cost is $ 2 3 30 40 4 5 6 789 10 11 12 30 60 30 20 70 60 1 30 2 3 4 5 6 7 30 30 60 30 (enter your response as a whole number). 8 9 20 70 10 11 12 60

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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Develop a​ lot-for-lot solution and calculate total relevant costs for the gross requirements in the following​ table*.
                                                                                                                                        
Period
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
30
 
30
 
30
60
30
 
20
70
 
60
 
​*Holding
cost=​$3.50​/unit/week;
setup
cost=​$150​;
lead
time=1
​week; beginning
inventory=40.
 
Develop a​ lot-for-lot solution
​(enter
your responses as whole
numbers​).
 
Period
 
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
 
30
 
30
 
30
60
30
 
20
70
 
60
Scheduled receipt
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected​ On-hand
40
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Net Requirements
 
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Planned Order receipt
 
 
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Planned Order release
 
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The total cost is
​$enter your response here
​(enter
your response as a whole
number​).

 

### Lot-for-Lot Solution Calculation In this exercise, we will develop a lot-for-lot solution and calculate the total relevant costs for the given gross requirements over a 12-period horizon. The details of the requirements and costs are provided below. #### Given Data: - **Periods:** 12 (1 to 12) - **Gross Requirements:** - Period 1: 30 units - Period 2: 30 units - Period 3: 30 units - Period 4: 30 units - Period 5: 60 units - Period 6: 30 units - Period 7: 20 units - Period 8: 70 units - Period 9: 60 units - **Costs:** - Holding Cost = $3.50 per unit per week - Setup Cost = $150 - Lead Time = 1 week - Beginning Inventory = 40 units #### Step-by-Step Process 1. **Period Analysis**: - **Period:** Each period from 1 to 12 will be analyzed separately. - **Gross Requirements:** The total units required for each period are as listed above. 2. **Tables for Calculation**: - **Scheduled Receipt:** Initially empty, this will be filled in based on the planned order releases and the lead time. - **Projected On-hand:** Beginning inventory for period 1 is 40 units. We will adjust for each subsequent period based on the remaining inventory after meeting gross requirements. - **Net Requirements:** Calculated as the remaining gap after accounting for on-hand inventory and scheduled receipts. - **Planned Order Receipt:** Reflects the units planned to be received in each period to meet net requirements. - **Planned Order Release:** Reflects the quantity released given the lead time. 3. **Total Cost Calculation**: - We will sum the holding costs and setup costs based on the projected on-hand inventory and planned orders. Below is the table format to fill in the required data: | **Period** | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |-------------------------|----|----|----|----|----|----|----|
Transcribed Image Text:### Lot-for-Lot Solution Calculation In this exercise, we will develop a lot-for-lot solution and calculate the total relevant costs for the given gross requirements over a 12-period horizon. The details of the requirements and costs are provided below. #### Given Data: - **Periods:** 12 (1 to 12) - **Gross Requirements:** - Period 1: 30 units - Period 2: 30 units - Period 3: 30 units - Period 4: 30 units - Period 5: 60 units - Period 6: 30 units - Period 7: 20 units - Period 8: 70 units - Period 9: 60 units - **Costs:** - Holding Cost = $3.50 per unit per week - Setup Cost = $150 - Lead Time = 1 week - Beginning Inventory = 40 units #### Step-by-Step Process 1. **Period Analysis**: - **Period:** Each period from 1 to 12 will be analyzed separately. - **Gross Requirements:** The total units required for each period are as listed above. 2. **Tables for Calculation**: - **Scheduled Receipt:** Initially empty, this will be filled in based on the planned order releases and the lead time. - **Projected On-hand:** Beginning inventory for period 1 is 40 units. We will adjust for each subsequent period based on the remaining inventory after meeting gross requirements. - **Net Requirements:** Calculated as the remaining gap after accounting for on-hand inventory and scheduled receipts. - **Planned Order Receipt:** Reflects the units planned to be received in each period to meet net requirements. - **Planned Order Release:** Reflects the quantity released given the lead time. 3. **Total Cost Calculation**: - We will sum the holding costs and setup costs based on the projected on-hand inventory and planned orders. Below is the table format to fill in the required data: | **Period** | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |-------------------------|----|----|----|----|----|----|----|
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