Evaluate optimal lot sizes and order frequency

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Question: A car company sells three models of ecocars, TOYOTA, HONDA, and HYUNDAI. Annual demands for the three products are DT = 3,000 for the TOYOTA, DH= 1000 units for the HONDA, and DS= 500 units for the TABLET, and each model costs FB-HiFi Buy $400,000, $550,000 and $600,000, respectively. A fixed transportation cost of $12,000 is incurred each time an order is delivered. For each model ordered and delivered on the same truck, an additional fixed cost of $1000 is incurred for receiving and storage. The car company incurs a holding cost of 20 percent. Evaluate optimal lot sizes, order frequency, and annual inventory-related cost associated to each of the following in EXCEL

a) Lots for each product are ordered and delivered independently.

b) All three models are included each time an order is placed.

c) Some products are ordered jointly.

Reference no: EM131473988

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