Inventory Management
1. Economic order quantity (EOQ) model
2. Economic order quantity without instantaneous
Economic
receipt (Production Run Model)
3. Quantity discount model
3.
4. ABC analysis
Appendix 1: Derivation of EOQ
Appendix 2: Derivation of EPQ
Topic 2: Linear Programming
Supplementary Exercises - Questions
Question 1
(Media Selection) The Win Big Gambling Club promotes gambling junkets from a large
Midwestern city to casinos in the Bahamas. The club has budgeted up to $8,000 per week for local
Topic 5: Forecasting
Supplementary Exercises - Questions
Question 1
Big City Bookstore is one of the large bookstores in the United States. In order to
choose suitable books to audiences and keep enough amount of inventory in apartment,
it is important fo
Forecasting Models
1.
2.
3.
4.
5.
6.
Eight Steps to Forecasting
Types of Forecast Models
Three Measures of Forecast Error
Time-Series Models
Trend Projections and Seasonality Variations
Decomposition of a Time Series
Reference: Text Chapter 5
Appendix: A.
Topic 4: Project Management
Supplementary Exercises - Solutions
Question 1
(a) & (b)
Activity
RM, Remove & clean for Mens
RW, Remove & clean for Womens
SM, Stock check for Mens
SW, Stock check for Womens
PM, Place order for Mens
PW, Place order for Womens
Topic 4: Project Management
Supplementary Exercises - Questions
Question 1
A department store has 2 sections in the shoe department: mens and womens. Stock
replenishment work includes the following activities performed in sequence and
separately by 3 staf
Topic 3: Decision Analysis
Supplementary Exercises - Questions
Question 1
The Green Grocery must decide how many cases of fresh milk to order each day to
meet demand. Daily demand for milk is known to be 50, 51, 52 and 53 cases with
probabilities 0.1, 0.4
Topic 2: Linear Programming
Supplementary Exercises Solutions
Question 1 (Supplementary Reading: Q4.13)
Let T be number of 1-minute TV spots selected each week.
N be number of full-page daily newspaper ads selected each week.
P be number of 30-second prim
Linear Programming (LP) Models: Part 3
1. Sensitivity Analysis
2. Interpretation of Computer Reports (Excel Solver)
Learning objectives:
Understand the impact of changes in the objective
function coefficients, and right-hand-side values on
the optimal sol
Linear Programming (LP) Models: Part 1
Graphical & Computer Methods
1.
2.
3.
4.
5.
6.
Properties and assumptions
Problem formulation
Graphical solution methods
Maximization problem (product-mix)
Minimization problem (diet design)
Special Cases of LP Probl
Topic 1: Inventory Management
Supplementary Exercises Solutions
1.
Given
D = 900 units / month, i.e. D = 900 12 = 10,800 units / year
C0 = $160;
C = $12;
I = 20%;
L = 4 days
No. of working days (T) = 360
(Basic EOQ model)
a) EOQ =
2 C0 D
2 160 10,800
=
=
Topic 1: Inventory Management
Supplementary Exercises - Questions
1. A factory purchases a component used in the manufacture of automobile generators directly from
the supplier. The generator production operation, which in operated at a constant rate, wil