For a product with a weekly demand of 250+Y units, the ordering cost is 50+X TL. The following table is followed in calculating the unit cost of the product. Create the order policy and calculate the costs. Generate completely independent answers for both discount models.( X=20 , Y= 50 )

For a product with a weekly demand of 250+Y units, the ordering cost is 50+X TL. The following table is followed in calculating the unit cost of the product. Create the order policy and calculate the costs. Generate completely independent answers for both discount models.( X=20 , Y= 50 )

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

subject name is production planning and control for IE

Q< 1000; c = 1 + 0. Y TL
1000 ≤ Q < 1500; 0.9 +0. Y TL
Q≥ 1500; 0.75 +0. Y TL

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PLEASE ANSWER ASAP, I REALLY NEED HELP
Cheryl Druehl has asked you to help her determinethe best ordering policy for a new product. The demand for thenew product has been forecasted to be about I ,000 units annually.To help you get a handle on the carrying and ordering costs,Cheryl has given you the list of last year's costs. She thought thatthese costs might be appropriate for the new product. She also told you that these data were compiled for 10,000 inventoryitems that were carried or held during the year. You havealso determined that 200 orders were placed last year. Your job as a new opera tions management graduate is to help Cheryl determinethe economic order quantity for the new product.
Birka Styles & Co is introducing a new line of beachwear for their retail stores. The manager needs to decide how many lots of the new beachwear to order for their stores. The marketing came up with a payoff table (see below) considering information about the price, projected sales level, and cost of inventory and ordering. DEMAND Order size Low Medium High 1 lot 12,000 15,000 15,000 2 lots 9,000 25,000 35,000 3 lots 6,000 35,000 60,000 The owner found out that: P(Low demand) = 1/3; P(Med demand) = 1/2; P(High demand) = 1/6. Which of the following decision is NOT true? A)The best decision is to order 3 lots for a payoff of $29,500. The probabilities gave me enough information to perform a Laplace approach. B)The best decision is to order 3 lots for a payoff of $29,500. The probabilities gave me enough information to perform the EMV approach. C)The EVPI is $2,000. D)The EVwPI is $31,500.
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