Question -
Grace Greenberg, production planner for Science and Technology Labs, in New Jersey, has the master production plan shown below:
|
Period (weeks)
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
11
|
12
|
|
Gross requirement
|
|
35
|
|
40
|
|
10
|
|
|
25
|
10
|
|
45
|
Lead time = 1 period; setup costs = $200; holding cost = $10 per week; stock out cost = $10 per week. Develop an ordering plan and costs for Grace, using these techniques:
a) Lot-for-lot.
b) EOQ.
c) POQ.
d) Which plan has the lowest cost?