4. Lot-Sizing Technique /20+5 points The LSU bookstore sells rcams of 8/*x11 Geo

Question

4. Lot-Sizing Technique /20+5 points The LSU bookstore sells rcams of 8/*x11 Georgia Pacific brand printing papers. During a typical 8-week period the sales pattern is 230, 220, 360, 280, 340, 220, 310, and 250 reams. A ream costs the store S2 each, and holding cost is $0.008/rean/week. The cost of employee time, panerwork and handling amounts to S15 per order What is the optimal ordering policy in S-week period based on Part-l'erind Balancing Technique? Ordering Sales Lot sizeAdation a Period, k volume 9 No of eds Carrying cost of [Cumulative carrying beg. Inv. additor al in v. Hela addtional unts Period in week) 20-360 ?80 | 310 | 220 | 310 250 Weekly Demand per week Ordering Policy (reats)

Explanation / Answer

Order period Sales Volume Lot Size Q Additional BI # periods held Carying cost of additional units Cumulative carrying cost 1 230 230 0 0 0 0 1 220 450 220 1 1.76 1.76 1 360 810 360 2 5.76 7.52 1 280 1090 280 3 6.72 14.24 o 1 340 1430 340 4 10.88 25.12 x 5 340 340 0 0 0 0 5 220 560 220 1 1.76 1.76 5 310 870 310 2 4.96 6.72 5 250 1120 250 3 6 12.72 Period 1 2 3 4 5 6 7 8 Demand 230 220 360 280 340 220 310 250 Policy 1090 1120

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