Consider the above bolt example yet again assuming the, Ask an Expert

Management Studies

Consider the above bolt ex yet again assuming the demand 60 per week is correct. suppose the minimum reorder interval is 1 month and all order cycle is placed on a power of 2 multiple of months (ie 1 month, 2 months 4 months and 8 months etc) in order to permit truck sharing with the orders of the parts

a) what is the least cost reorder interval under this restriction

b) how much does this add to the total cost

c) how is the effectiveness of powers of 2 order interval related to the result of the previous problem regarding the effect of the demand forecasting error

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M990503

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