Happy Al tries to run an optimal lot sizing on his Planned Order Release vector. The orders vector is: r = (52, 36, 27, 60)
You are not sure about the exact ordering or holding cost, but you know that the ratio of ordering to holding cost is 50:1 (You can assume if you want that the holding is $ per part per period)
Find the optimal ordering vector with regard to the lot size.
Happy Al remembers now that his capacity is limited to 55 units every period. Does it change your solution? If so can you suggest a feasible solution?
Happy Al gets a special offer to double his capacity for a price of $ 150, Should he upgrade his capacity?