mathxl.com Do Homework - Genesis Toro Develop A? Lot-for-lot Solution And Calcul

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mathxl.com Do Homework - Genesis Toro Develop A? Lot-for-lot Solution And Calculate Tota... I Chegg.com Operations Management OMG 322-31 Genesis Toro ? | 4/21/18 10:26 PM Homework: Chapter 14 HW Assignment Save Score: 0 of 1 pt 7 of 10 (9 complete) ? HW Score: 90%, 9 of 10 pts Overview, question 7 of 10, 9 complete Problem 14.22 EQuestion Help Develop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the following table. Period 1 2 3 4 5 67 89 10 12 Gross requirements 20 30 40 60 20 20 80 50 Holding costs$ 1.50/unitweek; setup cost-$150; lead time = 1 week; beginning inventory-40. Develop a lot-for-lot solution (enter your responses as whole numbers). 1 2 3 4 5 6 7 8 9 10 1 Period Gross requirements On-hand at beginning of period On-hand at end of period Order receipt Order release 20 30 40 60 20 20 80 50 40 Enter your answer in the edit fields and then click Check Answer. Clear All Check Answer remaining

Explanation / Answer

The inventory carrying cost can be calculated based on two assumptions - a) on ending inventory, b) on average inventory. We have shown the result assuming (b)

If you apply $1.5 carrying cost on ending inventory only, the total cost will come as $1,110.

1 2 3 4 5 6 7 8 9 10 11 12 Gross requirement 20 30 40 60 20 20 80 50 On-hand at the beginning 40 40 20 20 0 0 0 0 0 0 0 0 0 On-hand at the end 20 20 0 0 0 0 0 0 0 0 0 0 Order receipt 10 40 60 20 20 80 50 Order release 0 10 0 40 60 20 0 20 80 0 50 0 Average Inventory 30 20 10 0 0 0 0 0 0 0 0 0 Holding cost $45 $30 $15 $0 $0 $0 $0 $0 $0 $0 $0 $0 Setup cost $150 $150 $150 $150 $150 $150 $150 Total cost Total relevant cost $45 $30 $165 $0 $150 $150 $150 $0 $150 $150 $0 $150 $1,140

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