Problem -
M. de Koster, of Rene Enterprises, has the master production plan shown below:
|
Period (weeks)
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
|
Gross requirement
|
|
15
|
|
20
|
|
10
|
|
|
25
|
Lead time = 1 period; setup cost = $200; holding cost = $10 per week; stock out cost = $10 per week. Your job is to develop an ordering plan and costs for:
a) Lot-for-lot.
b) EOQ.
c) POQ.
d) Which plan has the lowest cost?