4. (Inventory Management - Part 2) An item has a unit purchase cost of $50, and an inventory-carrying rateper period of 0.02. The additional data for this product is given below:PeriodDemand (units)Fixed Cost (S/order)(i)(ii)17510020110365100Assuming no backordering is allowed, answer the followings:(a) Check whether the demand is lumpy or not.(b) Apply the following heuristics on the problem given above.Period Order Quantity440105590100Silver-Meal(iii) Part-Period Balancing(c) Which of the solutions obtained in part (b) do you select?(d) Draw a network diagram to illustrate the given lot sizing problem, and calculate the cost values for eachare on the network.(e) Apply the Wagner-Whitin algorithm to determine the optimal order quantities, the optimal inventorylevels, and the minimum sum of the ordering and inventory carrying costs.

This question asked us to (a) check if the demand is lumpy or not. (b) Apply three heuristics:…

(Inventory Management - Part 2) An item has a unit purchase cost of $50, and an inventory-carrying rate per period of 0.02. The additional data for this product is given below: Period Demand (units) Fixed Cost (S/order) 75 100 2 0 110 3 65 100 Assuming no backordering is allowed, answer the followings: (a) Check whether the demand is lumpy or not. (b) Apply the following heuristics on the problem given above. (i) Period Order Quantity (ii) 4 5 40 90 105 100 Silver-Meal (iii) Part-Period Balancing (c) Which of the solutions obtained in part (b) do you select? (d) Draw a network diagram to illustrate the given lot sizing problem, and calculate the cost values for each are on the network. (e) Apply the Wagner-Whitin algorithm to determine the optimal order quantities, the optimal inventory levels, and the minimum sum of the ordering and inventory carrying costs.

(Inventory Management - Part 2) An item has a unit purchase cost of $50, and an inventory-carrying rate per period of 0.02. The additional data for this product is given below: Period Demand (units) Fixed Cost (S/order) 75 100 2 0 110 3 65 100 Assuming no backordering is allowed, answer the followings: (a) Check whether the demand is lumpy or not. (b) Apply the following heuristics on the problem given above. (i) Period Order Quantity (ii) 4 5 40 90 105 100 Silver-Meal (iii) Part-Period Balancing (c) Which of the solutions obtained in part (b) do you select? (d) Draw a network diagram to illustrate the given lot sizing problem, and calculate the cost values for each are on the network. (e) Apply the Wagner-Whitin algorithm to determine the optimal order quantities, the optimal inventory levels, and the minimum sum of the ordering and inventory carrying costs.

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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