A small manufacturing shop has coordinated a just-in-time (JIT) delivery policy with its supplier for one of its product components. The shop has an ample amount of space to store the product but uses the JIT policy to avoid having to maintain inventory. The supplier has agreed to a fee of $150 per delivery, no matter how many items are delivered. It costs the shop $25 per unit per day to store and maintain the product component. Demands over the next 4 days are as follows: Day 1 2 3 4 Demand 80 35 52 20 What would the 4-day cost of the shop's current policy?
A small manufacturing shop has coordinated a just-in-time (JIT) delivery policy with its supplier for one of its product components. The shop has an ample amount of space to store the product but uses the JIT policy to avoid having to maintain inventory. The supplier has agreed to a fee of $150 per delivery, no matter how many items are delivered. It costs the shop $25 per unit per day to store and maintain the product component. Demands over the next 4 days are as follows: Day 1 2 3 4 Demand 80 35 52 20 What would the 4-day cost of the shop's current policy?
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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A small manufacturing shop has coordinated a just-in-time (JIT) delivery policy with its supplier for one of its product components. The shop has an ample amount of space to store the product but uses the JIT policy to avoid having to maintain inventory. The supplier has agreed to a fee of $150 per delivery, no matter how many items are delivered. It costs the shop $25 per unit per day to store and maintain the product component. Demands over the next 4 days are as follows:
|
Day |
1 |
2 |
3 |
4 |
|
Demand |
80 |
35 |
52 |
20 |
What would the 4-day cost of the shop's current policy?
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