Full Throttle orders a key part from an external supplier and needs to determine the optimum...

Full Throttle orders a key part from an external supplier and needs to determine the optimum ordering plan for the next 5 weeks. The parts are ordered in bins that contain 200 parts per bin. They can order up to 4 bins per week. The planning team estimated the demand of parts of the next 5 weeks and the supplier gave them the following cost per bin for the next 5 weeks.

Week	1	2	3	4	5
Parts Demanded	750	425	300	575	700
Cost Per Bin	$2,000	$1,670	$1,840	$2,190	$1,680

They currently do not have any parts on hand and will incur a carrying cost of $7.50 per part based on average inventory. Develop an Excel model and solve using Solver to find their optimum ordering strategy.

Solutions

Expert Solution

Step 1: Create an Excel model in this way

Step 2:

Solver Parameters

Press Solve

Step 3:

"Pressing solve button Yellow boxes show the values"

In solver results box press ok by keeping option as keep solver solution...

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keosha answered 2 weeks ago

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