Ellen Farr is responsible for purchasing forgings and castings for Farr Machining Corporation s raw material stockroom.
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Question:
Ellen Farr is responsible for purchasing forgings and castings for Farr Machining Corporations raw material stockroom. Ellens job is to purchase enough castings and forgings to meet weekly demand for these items by the firms fabrication shop in producing machined parts. Forecast weekly requirements for one item the input shaft forging and cost information for this item are as follows:
Week
Forecast
Ordering cost $
Inventory carrying cost $unitweek
Calculate the orders Ellen would place and the total cost incurred using:
a Economic Order Quantity EOQ
b Periodic Order Quantity POQ
c Part Period Balancing PPB
Posted Date: