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(Solved): Ordering cost =$250, inventory holding cost $2 per unit per week. There are 120 units beginning inve ...



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


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