Question

Please answer number 6.38, thank you

annual expenses. Should Bench do it? 6.38. Suppose that Bench, in addition to limited warehouse space, also has a budget limitation of $3800 for investment in inventory. Calculate the optimal quantities to be stored. Compare with the results of Problem 6.37. 6.39. For the case of incremental dia..... ...

Answer 1

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Answer:

Bench 1 Bench 2 Bench 3 Bench 4 55 317 401 1000 289 5000 10 10000 Order Qty (Qi) Anual demand (Di) Preparation cost (Si) Unit cost (Ci) Space per unit (ft2) 8000 10 3 100 5L L 1.5 Prep cost = (Di/Qi)*Si $109 $173 $160 Holding cost = Qi*0.2*Ci/2 $54.85 $86.72 $316 $158.33 $50,000 $80.11 Production cost = Ci*Di $10,000 $15,000 $16,000 $92,138 Total cost Total space 1500 1481 3800 <= Inventry investment cos 3800

Please find below the formulas used in specific cells. Also, Solver has been used to find Order quantities (Qi)

Set Objective: WEMIN Bank 1 Bank 2 Bank 3 Bank 4 To: O Max Min O value of 0 1000 10000 8000 Order Qty (1) Anual demand (DI) Preparation cost (SI) Unit cost (CI) Space per unit (ft2) 5000 10 By Changing Variable Cells SCS):SF53 10 Subject to the Constraints: SC514-$C$15 <- SE 14 SES15 SCS3:5F53 - SCSA:SE54 SCS3:5F53 -1 Add Change Prep cost (D1/01)*si C4/C3)*c5 Holding cost - Qi*0.2*1/2 -C30.2°C6/2 Production cost = Ci Di C4°C5 Total cost -(04/03) 05 -D3*0.2°06/2 =D4D6 (E4/E3)*ES =E3 0.2°E6/2 -E4E6 (F4/F3) *F5 -F3*0.2*F6/2 -F4F6 SUMC9:11) Relate Reset All 1500 Total space Inventry investment cos -SUMPRODUCT|C7:F7,C3:F3) -SUMPRODUCT(C6:F6, C3:F3) 3800 Load/Sare Make Unconstrained variables Non-Negative Select a Solving Method GRG Nonlinear Options Solving Method Select the GRG Nonlinear engine for Solver problems that are smooth nonlinear. Select the LP Simplex engine for linear Solver problems, and select the Evolutionary engine for Solver problems that are non-smooth