Ordering cost
=$250
, inventory holding cost
$2
per unit per week. There are 120 units beginning inventory; there are no scheduled receipts at the beginning;
EOQ=
122 units. \table[[Lead time
=1
week,,,,,,],[,1,2,3,4,5,6],[Gross requirements,50,80,90,50,30,60],[On Hand Inventory,,,,,,],[NET Requirements,,,,,,],[Planned recelpts,,,,,,],[Planned orders,,,,,,]] Hint: Inventory carrying cost
=
Sum (cost per unit per week
x
ending inventory of a week ) Ordering cost
=
ordering cost per order
x#
of orders Using lot for lot method, what are your inventory carrying and ordering costs? Carrying
=$140
, Ordering
=$1,250
Carrying
=$1,970
, Ordering
=$125
Carrying
=$120
, Ordering
=$1,460
Carrying
=$129
, Ordering
=$1,132
Carrying
=$450
, Ordering
=$390