1. types of inventories - cyut.edu.tw.pptVIP

By: Prof. Y.P. Chiu 2005/09/01 Materials Management Prof. Yuan-Shyi Peter Chiu * * By: Prof. Y.P. Chiu Wagner – Whitin Algorithm Prof. Yuan-Shyi Peter Chiu Feb. 2011 Material Management Class Note #1-B § M6: Wagner – Whitin Algorithm (page 4) Example ~ A general model for Production Planning Terms: Periods: 1,2,3,….N ?i: demand rate in period i h : holding cost / item / period K : setup cost c : unit cost : cost of producing enough items for period i thru. j at beginning of period i ◇ (B) Formula ...[Eq.6.1] …...[Eq.6.2] ? Lowest cost from period i to N that will satisfies demand § M6: Wagner – Whitin Algorithm (page 5) ◇ Demand 1Q 2Q 3Q 4Q 3000 2000 3000 2500 P1 P2 P3 P4 λ1 λ2 λ3 λ4 X2 X3 X4 [Eg.] § M6: Wagner – Whitin Algorithm (page 6) ◇ [Eg] solution: § M6: Wagner – Whitin Algorithm (page 7) ◇ [Eg] solution: § M6: Wagner – Whitin Algorithm (page 8) ◇ C1=Min [Answer] To produce enough items from 1st period to 2nd period, then To produce enough items from 3rd period to 4th period. In other words , production plan is: “ to produce 5000 items at the beginning of the first period, then to produce 5500 items at the beginning of the 3rd period ”. [Eg] solution: § M6: Wagner – Whitin Algorithm (page 10) ◇ ~ The End ~ ~ The End ~