Unformatted Question, please see the attachement for the original question
MGSC 625 Problem 15-14 15-24 Case 2.4, Case
3-1
Problem
15-14
Period
1
2
3
4
5
Demand
20
40
30
10
45
Co = 100 per order
Avg. demand/period, d=
29
Cc = $1 per unit per cabinet period
L4L
Rule Used.
Item X
LLC:
Periods
Periods
L4L
LT =1
1
2
3
4
5
Gross
Requirements
20
40
30
10
45
Scheduled
Receipts
0
0
0
0
0
Projected on
hand–25
5
0
0
0
0
Net
requirements
0
35
30
10
45
Planned order
receipts
35
30
10
45
Planned order
releases
35
30
10
45
Cost of L4L
$ 310.00
Ordering + Carrying
Cost
EOQ
Lot sizing
Item X
LLC:
Periods
Periods
EOQ
LT =1
1
2
3
4
5
Gross
Requirements
20
40
30
10
45
Scheduled
Receipts
0
Projected on
hand–25
5
41
11
1
32
Net
requirements
0
35
0
10
44
Planned order
receipts
76
0
76
Planned order
releases
76
76
0
76
EOQ =
87
Formula
EOQ = SQRT(2*d*Co/Cc)
Cost =
$
406.00
POQ Rule.
POQ=
3.00
Rounded to 2. Formula used is EOQ/Avg.
Demand, d.
Produce to take care of two periods
at a time.
Total Planned receipt=
Total gross reqmnts-on-hand=
30
Item X
LLC:
Periods
Periods
POQ =2
LT =1
0
1
2
3
4
5
Gross
Requirements
0
20
40
30
10
45
Scheduled
Receipts
Projected on
hand–
25
70
30
0
45
0
Net
requirements
65
0
0
10
0
Planned order
receipts
65
0
55
Planned order
releases
65
55
Planned
order size is the sum of planned order receipt for 2 consecutive weeks.
Cost=
$ 248.00
POQ
lot sizing is the cheapest approach.