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    Given parameters for a production problem including fixed costs, unit costs with and without discount, carrying charges, and demand over 6 periods. The optimal lot sizes are determined to be 60 units for period 1, 120 units for period 2, and 160 units for period 3 to minimize total costs and take advantage of discounts. The total costs for these lot sizes are $25,100, $15,050.10, and $27,035 respectively.

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    Given parameters for a production problem including fixed costs, unit costs with and without discount, carrying charges, and demand over 6 periods. The optimal lot sizes are determined to be 60 units for period 1, 120 units for period 2, and 160 units for period 3 to minimize total costs and take advantage of discounts. The total costs for these lot sizes are $25,100, $15,050.10, and $27,035 respectively.

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    5 views8 pages

    Book 1

    Uploaded by

    nhung.ntc4
    Given parameters for a production problem including fixed costs, unit costs with and without discount, carrying charges, and demand over 6 periods. The optimal lot sizes are determined to be 60 units for period 1, 120 units for period 2, and 160 units for period 3 to minimize total costs and take advantage of discounts. The total costs for these lot sizes are $25,100, $15,050.10, and $27,035 respectively.

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    of 8

    Problem 6:

    Given the following parameter values:


    Parameter Value

    Fixed cost per replenishment $100

    500
    Unit value without discount $500 per unit

    All-unit fraction discount 0.1

    Unit value with discount 450


    $450 per unit
    )
    Break point
    (discount is realized if 150 units

    Carrying charge (proportion of unit cost per


    0.02 per period
    unit time)
    Demand in period 1 50 units
    Demand in period 2 10 units
    Demand in period 3 120 units
    Demand in period 4 0 units
    Demand in period 5 80 units
    Demand in period 6 160 units

    meal Heuristics to determine lot sizes for the purchased component where discounts are available as given.

    t Dt At
    1 50 100
    2 10 100
    3 120 100
    4 0 100
    5 80 100
    6 160 100

    LOT 01: 60

    t Dt At
    1 50 100
    2 10 100
    3 120 100
    4 0 100
    5 80 100
    6 160 100

    LOT 02 120

    LOT 03 160
    ct ht
    0.02 25,100.00
    0.02 15,050.10
    0.02 27,035.00
    0.02
    0.02
    0.02

    ct ht
    0.02
    0.02
    0.02 60,100.00
    0.02 30,050.00
    0.02 30,034.40
    0.02 40,528.20
    MONTH DEMAND PRICE ORDER COST HOLDING COST
    Jan 18 4.75 35 0.095 120.50
    Feb 31 4.75 35 0.095 135.35
    Mar 23 4.75 35 0.095
    Apr 95 4.75 35 0.095
    May 29 4.75 35 0.095
    Jun 37 4.75 35 0.095
    Jul 50 4.75 35 0.095
    Aug 39 4.75 35 0.095
    Sep 30 4.75 35 0.095
    Oct 88 4.75 35 0.095
    Nov 22 4.75 35 0.095
    Dec 36 4.75 35 0.095

    MONTH DEMAND PRICE ORDER COST HOLDING COST


    Jan 18 4.75 35 0.095
    Feb 31 4.75 35 0.095 182.25
    Mar 23 4.75 35 0.095 146.84
    Apr 95 4.75 35 0.095 254.33
    May 29 4.75 35 0.095
    Jun 37 4.75 35 0.095
    Jul 50 4.75 35 0.095
    Aug 39 4.75 35 0.095
    Sep 30 4.75 35 0.095
    Oct 88 4.75 35 0.095
    Nov 22 4.75 35 0.095
    Dec 36 4.75 35 0.095

    MONTH DEMAND PRICE ORDER COST HOLDING COST


    Jan 18 4.75 35 0.095
    Feb 31 4.75 35 0.095
    Mar 23 4.75 35 0.095
    Apr 95 4.75 35 0.095 486.25
    May 29 4.75 35 0.095 313.38
    Jun 37 4.75 35 0.095 269.84
    Jul 50 4.75 35 0.095 265.32
    Aug 39 4.75 35 0.095 252.27
    Sep 30 4.75 35 0.095 236.35
    Oct 88 4.75 35 0.095 269.47
    Nov 22 4.75 35 0.095
    Dec 36 4.75 35 0.095
    453.00000
    279.79500
    245.81000

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