Average monthly demand of a production house is 300 units / month. However the demand is not linear and it fluctuates with the peak demand being 500 units per month and lowest demand
Deing units per month Problem for the production house is that they have an installed capacity of 350 units per month and as a result, it is losing on many customers as the company is not
able to tulfill the requirement of some of them in peak season whereas the company does not have adequate demand during dull season and hence they are idle most of the times
Yound to get solution for the above company so that they are able to match the demand (during peak as well as in dull season with the installed capacity by changing the demand
pattern
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D = 200/month = 2400/yr, A = (100+55)*1.5 = 232.5. P = 50/hr ... Hence, the percentage of working time taken by the production of this item is; ... O(t) denotes the “pipeline” inventory at time t (i.e., material ordered but not ... We are given the following information, annual demand = 140 units, ordering cost = 30 per
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