IU ISE506IU: INVENTORY CONTROL & MANAGEMENT I S E

Assignment 1 (optional)

Using any software (Matlab, excel,Cplex) to get optimal
ordering policy
IU ISE506IU: INVENTORY CONTROL & MANAGEMENT I S E

Assignment 2

Find the optimum ordering policy using the following
data using Wagner-Whitin algorithm

Month Demand Setup cost Inv. Cost

1 80 60 2
2 60 40 2
3 40 60 1
4 70 45 2
IU ISE506IU: INVENTORY CONTROL & MANAGEMENT I S E

Assignment 3

Demand for a 12-month horizon is as follows: 400; 600;
1000; 800; 1200; 900; 800; 1000; 1200; 700; 600; 800.

Inventory holding is 20% of unit prize C = $20.

Ordering cost is $300 per time. Calculate total cost

a. using lot-for-lot approach.

b. Using fixed order quantity, 4 times a year.

c. Using fixed order quantity, 2 times a year.

d. Using Wagner-Whitin approach.