EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 8220102480681
Author: Olsen
Publisher: WAVELAND
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Question
Chapter 8, Problem 50AP
a)
Summary Introduction
Interpretation: Compare the cost the policy obtained by heuristic lot-sizing method for the given example that obtained using EOQ.
Concept Introduction: Heuristic lot-sizing method is one of the Economic order Quantity(EOQ) model. The main aim of this method is that product demand may vary over the time.it is also called generalization of the inventory theory model.it will determine the economic lot size by order cost.
b)
Summary Introduction
Interpretation: Determine the advantages of the POQ approach over EOQ.
Concept Introduction: EOQ (Economic Order Quantity) defines that products are produced with the perfect quality making the cost of production based on the demand.POQ (Production Order Quantity) defines that demand is the increasingly function of the time and rate of production is proportional to the demand.
c)
Summary Introduction
Interpretation: Discuss about POQ method will be more cost effective in general than heuristic methods.
Concept Introduction: POQ (Production Order Quantity) is one of the free template to determine the production volume of the every production for goods with the demand. Through POQ, goods and materials will shipping in more at the time.
d)
Summary Introduction
Interpretation: Solve the given problem using POQ method and compare the total holding and set up cost with that obtained by the other methods.
Concept Introduction: One of the model is POQ is that quantity of the goods to be produced and when to order that produced goods are under the aim of the POQ.it is mainly used for Products produced time and sold to same time.
e)
Summary Introduction
Interpretation: Solve the given problem using POQ method and compare the total holding and set up cost with that obtained by the other methods.
Concept Introduction: In POQ model, each and every product will be produced only after the order placed by the company to the suppliers.POQ will be calculated by minimizing the total cost per order by obtaining the derivation of the first order to empty (Zero).
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Chapter 8 Solutions
EBK PRODUCTION AND OPERATIONS ANALYSIS
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