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Q- 1. The MP gross requirements for Item X are shown here for 4 weeks. Lead Time for A is one week and set up cost is $9. There is a carrying cost of $0.20. per unit per week. Begining inventory is 20 units in Week 1.
Week
1
2
3
4
Gross Requirements
20
10
15
45
a) Use the EOQ method to determine when and for what quantity the first order should be released.
b) Use the Silver-Meal heuristic to determine when and for what quantity the first order should be released.
The Marginal product of labor in production process is statistically estimated as MPL=10(K/L)^0.5 Currently the process is using 100 units of K and 121 units of L
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