Homework1_sol

# Homework1_sol - Stanford University Management Science and...

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Stanford University Management Science and Engineering MS&E 260 Fall 2016 Problem Session #3, Solution 1/6 MS&E 260: Introduction to Operations Management HOMEWORK #1, SOLUTION

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Stanford University Management Science and Engineering MS&E 260 Fall 2016 Problem Session #3, Solution 2/6 Note that once you decide on T, Q_A and Q_B are determined since the orders should be such that the demand for A and B are exactly 𝑄 ? = 𝜆 ? 𝑇 and 𝑄 ? = 𝜆 ? 𝑇 (no point to order more or less than that due to deterministic demand rates). The original cost in parts (a) and (b) are 212953 and 216667 respectively. Everything else being equal as compared to part (a), we have a higher cost in this situation as we lost the flexibility of planning each product however the addition of constraint in part(b) causes that cost to go much higher.
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• Spring '14
• Management, Stanford University, Problem Session, Management Science and Engineering

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