1. A company will begin stocking remote control devices. Expected monthly demand is 900 units. The controllers will be purchased from RCD supplieroffering price breaks for quantities. RCD's price list is as follows:Quantity RangeUnit PriceO to 29917.00300 to 39916.60400 to 016.20Given that ordering cost is $45 and annual holding cost is 0.20 of unit price per unit, provide thefollowing results:What is the feasible quantity?What is the total annual ordering cost at this quantity? $What is the total annual holding cost at this quantity? $What is the total annual material cost at this quantity? $What is the total annual cost at this quantity? $What is the most economical quantity to order?What is the savings in total annual cost at this quantity? $FORMAT FOR ENTRIES:All quantities and costs are in two decimals after the dot. (8457.20, for example)DO NOT ENTER $ sign for costsIf no saving in costs is available ENTER 0.00

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Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 14P

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A component used in a manufacturing facility is ordered from an outside supplier.Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint:Express h as the holding cost per thousand units.)d. Which method resulted in the lowest-cost policy for this problem?
A component used in a manufacturing facility is ordered from an outside supplier.Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint:Express h as the holding cost per thousand units.)a. What ordering policy is recommended by the Silver–Meal heuristic?
A component used in a manufacturing facility is ordered from an outside supplier.Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint:Express h as the holding cost per thousand units.)c. What ordering policy is recommended by the least unit cost heuristic?
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