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Busi. 410 Lab Pre-Practice 3

Busi. 410 Lab Pre-Practice 3 - $56.00 $54.12 $52.83 $52.17...

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The Golden Urn Weekly Demand Prob. 16 0.06 17 0.14 18 0.20 19 0.14 20 0.10 21 0.08 22 0.07 23 0.06 24 0.05 25 0.04 26 0.03 27 0.02 28 0.01 16 17 18 19 20 21 22 23 24 25 26 27 28 0.00 0.05 0.10 0.15 0.20 0.25 Assembly Line (A) Weekly demand Probability
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Assembly Line (A) Starting inventory 1 Order quantity 68 Setup cost per order $9.00 Inventory cost/case $0.20 Backorder cost/case $2.00 Week 1 2 3 4 5 6 Monday morning inventory 1 49 29 9 57 37 Shipments 68 0 0 68 0 0 Available 69 49 29 77 57 37 Week's demand (simulated) 20 20 20 20 20 20 Friday night inventory 49 29 9 57 37 17 Warehouse order costs $9.00 $0.00 $0.00 $9.00 $0.00 $0.00 Inventory costs $9.80 $5.80 $1.80 $11.40 $7.40 $3.40 Backorder costs $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total costs $18.80 $5.80 $1.80 $20.40 $7.40 $3.40 Total 6-week cost $57.60 Weekly Demand Prob. 16 0.06 17 0.14 18 0.20 19 0.14 20 0.10 21 0.08
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22 0.07 23 0.06 24 0.05 25 0.04 26 0.03 27 0.02 28 0.01
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Order quantity (62.00) Order quantity (63.00) Order quantity (64.00) Order quantity (65.00) Order quantity (66.00) Order quantity (67.00) Order quantity (68.00)
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Unformatted text preview: $56.00 $54.12 $52.83 $52.17 $52.05 $52.44 $53.23 1 Starting inventory (-4.00) $54.60 $53.13 $52.20 $51.90 $52.12 $52.80 $53.74 2 Starting inventory (-3.00) $53.51 $52.36 $51.85 $51.88 $52.41 $53.29 $54.38 3 Starting inventory (-2.00) $52.65 $51.89 $51.73 $52.10 $52.87 $53.90 $55.16 4 Starting inventory (-1.00) $52.04 $51.68 $51.86 $52.48 $53.45 $54.66 $56.03 5 Starting inventory (0.00) $51.72 $51.71 $52.16 $53.03 $54.18 $55.52 $56.98 6 Starting inventory (1.00) $51.66 $51.92 $52.64 $53.73 $55.01 $56.45 $57.98 7 1 2 3 4 5 6 7 The new optimal value for starting inventory is 1.00, and the new optimal value for order quantity is 62.00. However, these may not be the absolute optimal values, we would have to test the numbers adjacent to 1.00 and 62.00 next to determine if the total cost could decrease some more....
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