Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 8, Problem 43AP
Summary Introduction

Interpretation: Compare the costs of the resulting solutions to the cost of the solution obtained by using the Silver-Meal heuristic using Part Period balancing and least unit cost.

Concept Introduction: Silver meal heuristic method was developed by Edward A.Silver and H.C.Meal in 1973.The main focus of the silver meal method is production planning in manufacturing firms. This method provides the approximate solutions to the time-varying demand patterns.

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Please help solve all... please Geliga Bhd. is a distributor of industrial product in Johor. Item A is one of the materials needed in the production process. Item A is consumed at a steady usage at 4000 units per annum. The costs of ordering item A are invariant with respect to order size. The ordering cost has been calculated at RM30 per order. Each order is checked by an employee engaged in using item A in production who earns RM5 per hour irrespective of his output. The employee generates a contribution of RM4 per hour when he not involved in material checks and the stock check takes 5 hours. Annual holding cost amount to RM15 per unit. Required: a. Calculate the optimal order size of item A. b. The supplier of item A has recently offered Geliga Bhd. a quantity discount of RM0.24 per unit on the current price of RM24, for all orders of 400 or more units of item A.
What are the primary components of the Wilson approach, and how do they contribute to inventory optimization?
i have found anther answer for this question on bartleby and it has a lot less working out and he didnt give answer to second question but the answer he gave for the first one is very different i am not sure which one to use below is his answer: Step 1: Basic Information The question is related to Economic order quantiy Economic Order Quantity is that level of inventory at which ordering cost and handling cost are minimum. It is calculated with the help of following formula  Economic Order Quantity = √2RO ÷ C R = Annual Requirment  C = Carrying or Holding cost  O = Ordering Cost    Step 2: Solution Economic Order Quantity = √2RO ÷ C Economic Order Quantity = √2 × 3000 × 20 ÷ 4.25 Economic Order Quantity = √28,235.294117647 Economic Order Quantity = 168.0336100834 pounds  R = Annual Requirment i.e.250 × 12 = 3000 pounds per annum. C = Carrying or Holding cost i.e. £4.25  O = Ordering Cost i.e. £20 Quantity to be ordered = 168.03 pounds.  Supplier = Vendor 1 should be used as the cost…
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