A component used in a manufacturing facility is ordered from an outside supplier. Estimated demand (in thousands) over the next 10 weeks is in the table below. The components cost 55 cents each and the interest rate used to compute the holding cost is 0.5% per week. The fixed order cost is estimated to be $300. Week 1 2 3 4 5 6 7 8 9 10 Demand 22 34 32 12 8 44 54 16 76 30 Determine the lot sizes using part period balancing.

A component used in a manufacturing facility is ordered from an outside supplier. Estimated demand (in thousands) over the next 10 weeks is in the table below. The components cost 55 cents each and the interest rate used to compute the holding cost is 0.5% per week. The fixed order cost is estimated to be $300. Week 1 2 3 4 5 6 7 8 9 10 Demand 22 34 32 12 8 44 54 16 76 30 Determine the lot sizes using part period balancing.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter3: Introduction To Optimization Modeling

Section3.8: A Multiperiod Production Model

Problem 24P

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