hw11.docx - Homework#11 Nov 29nd 2016 Haixia Wang EMP506...

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Homework #11 Nov 29nd, 2016 Haixia Wang EMP506 Prof. Janow
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14.22 period 1 2 3 4 5 6 7 8 9 10 11 12 gross requirements 30 0 40 30 70 20 10 80 50 scheduled receipts projected on hand 40 10 10 0 0 0 0 0 0 0 0 0 net requirements 0 0 30 30 70 20 10 80 50 planned order receipts 30 30 70 20 10 80 50 planned order releases 30 30 70 20 10 80 50 Holding cost = (10 + 10) * 2.5 = $50 Ordering cost = 7 * 150 = $1050 Total cost = 50 +1050 = $1100
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14.23 12-week usage equals a gross requirement of 330 units, so 52 weeks (annual usage) is D = 330 / 12 * 52 = 1430 units Holding cost on an annual basis per unit is H = 2.5 * 52 = $130 Q = 2 DS H = 2 1430 150 130 = 57.4 units Therefore, place an order of 57 units to avoid a stockout. period 1 2 3 4 5 6 7 8 9 10 11 12 gross requirements 30 0 40 0 30 70 20 10 80 50 scheduled receipts projected on hand 40 40 10 10 27 27 54 41 21 21 11 45 45 52 net requirements 0 0 30 0 3 16 0 0 69 5 planned order receipts 57 57 57 0 0 114 57 planned order releases 57 57 57 114 58 Holding cost = (10 + 10 + 27 + 27 + 54 + 41 + 21 + 21 + 11 + 45 + 45 + 52) = 364 * 2.5 = $910 Ordering cost = 5 * 150 = $750 Total cost = 910 + 750 = $1660
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14.24 12-week usage equals a gross requirement of 330 units, so average weekly usage is 330 / 12 = 27.5 units EOQ = 57.4 units POQ interval = EOQ / average weekly usage = 57.4 / 27.5 = 2.09 or 2 weeks
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