a.

Silver-Meal Algorithm
m1 = 1 ; K(1) = 210
210+3.6 ( 0 )
m 2=2; K ( 2 )= =105, continue 105<210
2

210+3.6 ( 0 )+ 2 x 3.6(0)
m 3=3; K ( 3 ) = =70, continue 70<105
3

210+ 3.6 ( 0 ) +2 x 3.6 ( 0 ) +3 x 3.6 (20)

m 4 =4 ; K ( 4 )= =106.5, stop 106.5>70
4
Lot size period 1 = 10 + 0 + 0 = 10
Contiue from 4th,
m1 = 1 ; K(1) = 210
210+3.6 ( 70 )
m 2=2; K ( 2 )= =231, stop 231>210
2
Lot size period 2 = 20

Contiue from 5th,

m1 = 1 ; K(1) = 210
210+3.6 ( 180 )
m 2=2; K ( 2 )= =429, Stop 231>210
2
Lot size period 3 = 70
Contiue from 6th,
m1 = 1 ; K(1) = 210, but we already at the final period, so we conclude that,
lot size period 4 = 180

Period 1 2 3 4 5 6
Requirements 10 0 0 20 70 180
Order Size 10 20 70 180
Inventory 0 0 0 0 0 0
Cost 210 210 210 210

Total cost = 210 + 210 + 210 + 210 = $840

b. Silver-Meal Algorithm
[Step1]: t = 1, i = 1, start L = 1
TRC (1 ) 210+0
[ Step 2 ] : = =210
1 1

TRC ( 2 ) 210+3.6 ( 0 )
[ Step 3 ] : = =105
2 2
[Step 4.2]: 105<210, therefore t = 2, L = 2

Then go to step 2
TRC (2 ) 210+3.6 ( 0 )
[ Step 2 ] : = =105
2 2

TRC ( 3 ) 210+ 3.6 ( 0 ) +2 x 3.6(0)

[ Step 3 ] : = =70
3 3
[Step 4.2]: 70<105, therefore t = 3, L = 3

Then go to step 2
TRC (3 ) 210+3.6 ( 0 )+ 2 x 3.6(0)
[ Step 2 ] : = =70
3 3

TRC ( 4 ) 210+3.6 ( 0 )+ 2 x 3.6 ( 0 ) +3 x 3.6(20)

[ Step 3 ] : = =106.5
4 4
[Step 4.1]: 106.5>70
Lot size period 1 = 10 + 0 + 0 = 10

Then go to step 2
Set i = 4, t = 4, L=1
TRC ( 4 ) 210+0
[ Step 2 ] : = =210
1 1

TRC ( 5 ) 210+ 3.6 (70 )

[ Step 3 ] : = =231
2 2
[Step 4.1]: 231>210
Lot size period 2 = 20

Then go to step 2
Set i = 5, t = 5, L=1
TRC (5 ) 210+0
[ Step 2 ] : = =210
1 1

TRC ( 6 ) 210+3.6 ( 180 )

[ Step 3 ] : = =429
2 2
[Step 4.1]: 429>210"
Lot size period 3 = 70

Then go to step 2
Set i = 6, t = 6, L=1
TRC (6 ) 210+ 0
[ Step 2 ] : = =210
1 1
 but we already at the final period, so we conclude that,
lot size period 4 = 180

Period 1 2 3 4 5 6
Requirements 10 0 0 20 70 180
Order Size 10 20 70 180
Inventory 0 0 0 0 0 0
Cost 210 210 210 210

Total cost = 210 + 210 + 210 + 210 = $840