find the optimal order policy during 100week quarter based on the silver-meal heuristic and also calculate the total holding and ordering costs incurred over the 10-week period. Concept Introduction: One of the forward method is Silver meal heuristic method. This method defined as planning the production in manufacturing and also within the minimum cost to determine the quantities of the production to achieve the requirement of the process. It is also called as dynamic-lot-size model.

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Answer 1

Question

Chapter 8, Problem 51AP

a)

Summary Introduction

Interpretation: find the optimal order policy during 100week quarter based on the silver-meal heuristic and also calculate the total holding and ordering costs incurred over the 10-week period.

Concept Introduction: One of the forward method is Silver meal heuristic method. This method defined as planning the production in manufacturing and also within the minimum cost to determine the quantities of the production to achieve the requirement of the process. It is also called as dynamic-lot-size model.

b)

Summary Introduction

Interpretation: Determine the optimal policy and compare the total holding and ordering cost over the 10 weeks to the answer obtained in part (a).

Concept Introduction: Production Order Quantity(POQ) is determines that the volume of the optimal production for the every order of production for the goods with the independent demand.one of the model EOQ(Economic Order Quantity)refers that the goods are shipped in bulk of orders at a time.

c)

Summary Introduction

Interpretation: Determine the economical in general to face a smooth or a spiky demand pattern based on the results of part (a) and part (b)

Concept Introduction: Spiky demand refers to bulk orders of the product. Suppose when bulk orders occurs, the overall historical demand curve yields to have a rather spiky shape. This kind of shape refers that certain orders for the significant percentage of the total demand.

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Sam's Pet Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.00 per bag. The following information is available about these bags: > Demand 95 bags/week > Order cost $52.00/order > Annual holding cost = 25 percent of cost > Desired cycle-service level = 80 percent >Lead time 4 weeks (24 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)

Sam's Pet Hotel operates 50 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags: > Demand = 95 bags/week > Order cost = $55.00/order > Annual holding cost = 35 percent of cost > Desired cycle-service level = 80 percent > Lead time = 4 weeks (24 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ 10.64 higher owing to the error in EOQ. (Enter your response rounded to two decimal places.) b. Suppose that actual demand is 75 bags but that ordering costs are cut to only $13.00 by using the internet to automate order placing. However, the buyer does…

Answer 2

Question

Chapter 8, Problem 51AP

a)

Summary Introduction

Interpretation: find the optimal order policy during 100week quarter based on the silver-meal heuristic and also calculate the total holding and ordering costs incurred over the 10-week period.

Concept Introduction: One of the forward method is Silver meal heuristic method. This method defined as planning the production in manufacturing and also within the minimum cost to determine the quantities of the production to achieve the requirement of the process. It is also called as dynamic-lot-size model.

b)

Summary Introduction

Interpretation: Determine the optimal policy and compare the total holding and ordering cost over the 10 weeks to the answer obtained in part (a).

Concept Introduction: Production Order Quantity(POQ) is determines that the volume of the optimal production for the every order of production for the goods with the independent demand.one of the model EOQ(Economic Order Quantity)refers that the goods are shipped in bulk of orders at a time.

c)

Summary Introduction

Interpretation: Determine the economical in general to face a smooth or a spiky demand pattern based on the results of part (a) and part (b)

Concept Introduction: Spiky demand refers to bulk orders of the product. Suppose when bulk orders occurs, the overall historical demand curve yields to have a rather spiky shape. This kind of shape refers that certain orders for the significant percentage of the total demand.

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Answer 3

Question

Chapter 8, Problem 51AP

a)

Summary Introduction

Interpretation: find the optimal order policy during 100week quarter based on the silver-meal heuristic and also calculate the total holding and ordering costs incurred over the 10-week period.

Concept Introduction: One of the forward method is Silver meal heuristic method. This method defined as planning the production in manufacturing and also within the minimum cost to determine the quantities of the production to achieve the requirement of the process. It is also called as dynamic-lot-size model.

b)

Summary Introduction

Interpretation: Determine the optimal policy and compare the total holding and ordering cost over the 10 weeks to the answer obtained in part (a).

Concept Introduction: Production Order Quantity(POQ) is determines that the volume of the optimal production for the every order of production for the goods with the independent demand.one of the model EOQ(Economic Order Quantity)refers that the goods are shipped in bulk of orders at a time.

c)

Summary Introduction

Interpretation: Determine the economical in general to face a smooth or a spiky demand pattern based on the results of part (a) and part (b)

Concept Introduction: Spiky demand refers to bulk orders of the product. Suppose when bulk orders occurs, the overall historical demand curve yields to have a rather spiky shape. This kind of shape refers that certain orders for the significant percentage of the total demand.

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Answer 4

Question

Chapter 8, Problem 51AP

a)

Summary Introduction

Interpretation: find the optimal order policy during 100week quarter based on the silver-meal heuristic and also calculate the total holding and ordering costs incurred over the 10-week period.

Concept Introduction: One of the forward method is Silver meal heuristic method. This method defined as planning the production in manufacturing and also within the minimum cost to determine the quantities of the production to achieve the requirement of the process. It is also called as dynamic-lot-size model.

b)

Summary Introduction

Interpretation: Determine the optimal policy and compare the total holding and ordering cost over the 10 weeks to the answer obtained in part (a).

Concept Introduction: Production Order Quantity(POQ) is determines that the volume of the optimal production for the every order of production for the goods with the independent demand.one of the model EOQ(Economic Order Quantity)refers that the goods are shipped in bulk of orders at a time.

c)

Summary Introduction

Interpretation: Determine the economical in general to face a smooth or a spiky demand pattern based on the results of part (a) and part (b)

Concept Introduction: Spiky demand refers to bulk orders of the product. Suppose when bulk orders occurs, the overall historical demand curve yields to have a rather spiky shape. This kind of shape refers that certain orders for the significant percentage of the total demand.

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Answer 5

Chapter 8, Problem 51AP

a)

Summary Introduction

Interpretation: find the optimal order policy during 100week quarter based on the silver-meal heuristic and also calculate the total holding and ordering costs incurred over the 10-week period.

Concept Introduction: One of the forward method is Silver meal heuristic method. This method defined as planning the production in manufacturing and also within the minimum cost to determine the quantities of the production to achieve the requirement of the process. It is also called as dynamic-lot-size model.

b)

Summary Introduction

Interpretation: Determine the optimal policy and compare the total holding and ordering cost over the 10 weeks to the answer obtained in part (a).

Concept Introduction: Production Order Quantity(POQ) is determines that the volume of the optimal production for the every order of production for the goods with the independent demand.one of the model EOQ(Economic Order Quantity)refers that the goods are shipped in bulk of orders at a time.

c)

Summary Introduction

Interpretation: Determine the economical in general to face a smooth or a spiky demand pattern based on the results of part (a) and part (b)

Concept Introduction: Spiky demand refers to bulk orders of the product. Suppose when bulk orders occurs, the overall historical demand curve yields to have a rather spiky shape. This kind of shape refers that certain orders for the significant percentage of the total demand.

Answer 6

Chapter 8, Problem 51AP

a)

Summary Introduction

Interpretation: find the optimal order policy during 100week quarter based on the silver-meal heuristic and also calculate the total holding and ordering costs incurred over the 10-week period.

Concept Introduction: One of the forward method is Silver meal heuristic method. This method defined as planning the production in manufacturing and also within the minimum cost to determine the quantities of the production to achieve the requirement of the process. It is also called as dynamic-lot-size model.

Answer 7

Chapter 8, Problem 51AP

a)

Summary Introduction

Interpretation: find the optimal order policy during 100week quarter based on the silver-meal heuristic and also calculate the total holding and ordering costs incurred over the 10-week period.

Concept Introduction: One of the forward method is Silver meal heuristic method. This method defined as planning the production in manufacturing and also within the minimum cost to determine the quantities of the production to achieve the requirement of the process. It is also called as dynamic-lot-size model.

Answer 8

b)

Summary Introduction

Interpretation: Determine the optimal policy and compare the total holding and ordering cost over the 10 weeks to the answer obtained in part (a).

Concept Introduction: Production Order Quantity(POQ) is determines that the volume of the optimal production for the every order of production for the goods with the independent demand.one of the model EOQ(Economic Order Quantity)refers that the goods are shipped in bulk of orders at a time.

Answer 9

b)

Summary Introduction

Interpretation: Determine the optimal policy and compare the total holding and ordering cost over the 10 weeks to the answer obtained in part (a).

Concept Introduction: Production Order Quantity(POQ) is determines that the volume of the optimal production for the every order of production for the goods with the independent demand.one of the model EOQ(Economic Order Quantity)refers that the goods are shipped in bulk of orders at a time.

Answer 10

c)

Summary Introduction

Interpretation: Determine the economical in general to face a smooth or a spiky demand pattern based on the results of part (a) and part (b)

Concept Introduction: Spiky demand refers to bulk orders of the product. Suppose when bulk orders occurs, the overall historical demand curve yields to have a rather spiky shape. This kind of shape refers that certain orders for the significant percentage of the total demand.

Answer 11

c)

Summary Introduction

Interpretation: Determine the economical in general to face a smooth or a spiky demand pattern based on the results of part (a) and part (b)

Concept Introduction: Spiky demand refers to bulk orders of the product. Suppose when bulk orders occurs, the overall historical demand curve yields to have a rather spiky shape. This kind of shape refers that certain orders for the significant percentage of the total demand.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 8.1 - Prob. 1P Ch. 8.1 - Prob. 2P Ch. 8.1 - Prob. 3P Ch. 8.1 - Prob. 4P Ch. 8.1 - Prob. 5P Ch. 8.1 - Prob. 6P Ch. 8.1 - Prob. 7P Ch. 8.1 - Prob. 8P Ch. 8.1 - Prob. 9P Ch. 8.2 - Prob. 10P

Solution Summary: The author calculates the optimal order policy during 100week quarter based on the silver-meal heuristic method and the total holding and ordering costs incurred over the 10-week period.

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