Please try to solve it within 1 hour 1. A manufacturing facility orders high-strength bolts from an outside supplier. The demand forbolts is high, since they are used in a variety of end products manufactured at the facility.Estimated demand (in thousands) over the next 10 weeks is:Week23457810Demand 2234321284454167630The bolts cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent perweek. The fixed order cost is estimated to be $200. (Hint: Express h as the holding cost per thousandunits.)a. What ordering policy is recommended by the Silver-Meal heuristic?b. What ordering policy is recommended by the part period balancing heuristic?c. What ordering policy is recommended by the least unit cost heuristic?d. Which method resulted in the lowest-cost policy for this problem?

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Answered: 1. A manufacturing facility orders…

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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Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.
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?
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.)b. What ordering policy is recommended by the part period balancing heuristic?
3. Cynthia Knott’s oyster bar buys fresh Louisiana oysters for $5 per pound and sells them for $12 per pound. Any oysters not sold that day are sold to her cousin, who has a nearby grocery store, for $1 per pound. Cynthia believes that demand follows the normal distribution, with a mean of 100 pounds and a standard deviation of 15 pounds. a) What is the cost of underestimating demand for each pound? b) What is the overage cost per pound? c) How many pounds of oyster should she order each day? d) What is the stockout risk for this order size?
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A wholesaler has a steady demand for 50 items of a given product each month.The purchase cost of each item is 6 MU and the holding cost for this item is estimated tobe 20% of the stock value per annum. Every order placed by the wholesaler cost 10 MUin administration charges regardless of the number ordered? Please mention formulas and do it in detail so I can understand.
I Carry rents trucks for moving and hauling. Each truck costs the company anaverage of $8,000, and the inventory of trucks varies monthly depending on thenumber that are rented out. During the first eight months of last year, I Carry hadthe following ending inventory of trucks on hand:Month Number of Trucks Month Number of TrucksJanuary 26 May 13February 38 June 9March 31 July 16April 22 August 5I Carry uses a 20 percent annual interest rate to represent the cost of capital.Yearly costs of storage amount to 3 percent of the value of each truck, and the costof liability insurance is 2 percent.a. Determine the total handling cost incurred by I Carry during the period Januaryto August. Assume for the purposes of your calculation that the holding costincurred in a month is proportional to the inventory on hand at the end of themonth.b. Assuming that these eight months are representative, estimate the average annual cost of holding trucks

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