Ordering cost
=$250, inventory holding cost
$2per unit per week. There are 120 units beginning inventory; there are no scheduled receipts at the beginning;
EOQ=122 units. \table[[Lead time
=1week,,,,,,],[,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
xending 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
=$1,250Carrying
=$1,970, Ordering
=$125Carrying
=$120, Ordering
=$1,460Carrying
=$129, Ordering
=$1,132Carrying
=$450, Ordering
=$390