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
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...
Related questions
Question
Develop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the following table*.
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Period
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1
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2
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3
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4
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5
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6
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7
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8
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9
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10
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11
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12
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Gross requirements
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30
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30
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30
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60
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30
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20
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70
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60
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*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).
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Period
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1
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2
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3
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4
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5
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6
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7
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8
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9
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10
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11
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12
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Gross requirements
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30
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30
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30
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60
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30
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20
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70
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60
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Projected On-hand
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40
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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Net Requirements
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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Planned Order receipt
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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Planned Order release
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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enter your response here
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The total cost is
$enter your response here
(enter
your response as a whole
number).
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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