Item A is one of the products manufactured at ABC Manufacturing. • Each order for producing the product has a cost of $240/order, regardless of the number of units ordered. • The lead time for placing the order is 1 week. • The inventory cost is $2/ unit/week. The gross requirement for Item A is specified for the beginning of weeks 1 through 8 in the table that follows. Gross Requirement Item A Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 55 75 0 65 0 45 95 80 For a "lot size using Part Period (PP)" scheduling policy, determine the Part Period (PP). What is the Part Period (PP)? 120 Round to a whole number

Item A is one of the products manufactured at ABC Manufacturing. • Each order for producing the product has a cost of $240/order, regardless of the number of units ordered. • The lead time for placing the order is 1 week. • The inventory cost is $2/ unit/week. The gross requirement for Item A is specified for the beginning of weeks 1 through 8 in the table that follows. Gross Requirement Item A Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 55 75 0 65 0 45 95 80 For a "lot size using Part Period (PP)" scheduling policy, determine the Part Period (PP). What is the Part Period (PP)? 120 Round to a whole number

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The annual demand of Bulldogs Inc. sole product totaled 450,000 units. Due to uncertainty in supply of items, the maximum possible lead time for the orders is 2 weeks and 1 day. A safety stock of 6,250 units is determined. What is the normal lead time? (Use 360 days) A. 10 days B. 9 days C. 1 week and 5 days D. 1 week
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Use the quantity model for production orders.
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