Q-5 A firm was producing three varieties of an electronics component. Two transport modes have been used such as air and water. The demand is stable (No uncertainty). Top Model Average Model Low model Unit Cost (Rs.) 10,000 8,000 6,000 Mean 300 300 300 Demand/week (Units) Inventory Carrying cost/unit/year (Rs) 6,000 5,000 4,000 The lot size is 1200 units and 300 units for water and air respectively. The transportation cost for air and water are Rs. 440 rupees and Rs. 110 respectively. The lead time of delivery for air and water is 1 week and 4 weeks respectively.The firm is using the cycle stock inventory as the half of pipeline inventory. Determine the optimal decision using following data for stable demand.
Q-5 A firm was producing three varieties of an electronics component. Two transport modes have been used such as air and water. The demand is stable (No uncertainty). Top Model Average Model Low model Unit Cost (Rs.) 10,000 8,000 6,000 Mean 300 300 300 Demand/week (Units) Inventory Carrying cost/unit/year (Rs) 6,000 5,000 4,000 The lot size is 1200 units and 300 units for water and air respectively. The transportation cost for air and water are Rs. 440 rupees and Rs. 110 respectively. The lead time of delivery for air and water is 1 week and 4 weeks respectively.The firm is using the cycle stock inventory as the half of pipeline inventory. Determine the optimal decision using following data for stable demand.
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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