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Unformatted text preview: and purchasing prices for the next 5 months. Month Requirement (thousands) Price ($/thousand pieces) 1 5 10 2 10 11 3 6 13 4 9 10 5 4 12 The storage capacity for this item is limited to 12,000 units; there is no initial stock, and after the five-month period the item will no longer be needed. a. Derive a monthly purchasing schedule if total purchasing cost is to be minimized b. Assuming that a storage charge of $250 is incurred for each 1000 units found in inventory at the end of a month. What purchasing schedule would minimize the purchasing and the storing cost ? c. Generalize the above problem for the case when there are n months with requirement of r 1 , r 2 , …,r n and the cost of c 1 , c 2 , …,c n for each month. With storage capacity of S and storage cost of SC per 1000 units, formulate a recursion that would solve the generalized problem....
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This note was uploaded on 12/20/2011 for the course BUS 15.053 taught by Professor Prof.jamesorlin during the Spring '05 term at MIT.
- Spring '05