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1 By: Prof. Y. Peter Chiu 9 / 1 / 2011 PMc3-EG ~ SOLUTION ~

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2 1 By: Prof. Y. Peter Chiu 9 / 1 / 2011 PMc3-EG ~ SOLUTION ~

3 2 #4 (a) InvDem.Adj Dem. K Wor kers Reg’ d chaseProdInv.If adj Wor kers If adj Inv. 400Dec Jan Feb Mar Apr May Jun

4 3 (a) K = (20*8) / 6.4 = 25 Overall costs = 35(400)+37(200)+120(10) +780(10) = $30,400 if adjust costs = 34(400)+36(200)+45(10)+780(10) = $29,050

5 4 (b) Overall costs = 7(200)+1845(10)+780(10) = $ 27,650 Safety Stock Dem. Adj Dem. Comm. Dem K Workers Reg’d stable Cumm Prod Inv *

6 5 (C) case1 Adj D Cumm D Mix-ST.Cumm K Cumm P Inv (H)(F)(I) total

7 6 (C) case2 Adj D Mix-ST.Cumm P Inv (H)(F)(I) total

8 7 (C) case3 Adj D Cumm D Mix-ST.Cumm P Inv (675+60) ( ) (H)(F)(I) total

9 8 (C) case4 Adj D Mix-ST.Cumm P Inv (H)(F)(I) total

10 9 (C) case5 Adj D Mix-ST.Cumm P Inv (H)(F)(I) total  BEST

11 10 The End


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