# MSCI432 Lecture Notes - Msci, Operations Management, Carrying Cost

## Document Summary

Msci 432/633: production and service operations management, winter 2010. Msci 432. 001/633: assignment # 3; msci 432. 002: assignment # 2. Due by thursday, march 11, 2010 in class, individual submissions. Note there are 6 questions in this assignment. The fourth question is a bonus (!) question. The last two questions are required by msci432. 001/633 students only (msci432. 002 can work on them as practice questions, but they won"t be graded). Msci432. 001/633 students have to solve 5+1 questions, while msci432. 002 students have to solve 3+1 questions. Olympix assembles and sells 104 units of its vancouvex product every year. Each unit of vancouvex requires 4 units of item a, 1 unit of item b, and 40 units of item c. these three components are purchased from three different suppliers. Each of the suppliers offer a 2% all unit discount on any replenishment of 100 units or higher of a single item. Ordering cost is . 50 and % carrying cost is 0. 24.