Holding cost is $2.50/unit/week (period) setup cost: $175 Lead time 1 week beginning inventory 50 stockout cost=$10
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Holding cost is $2.50/unit/week (period)
setup cost: $175
Lead time 1 week
beginning inventory 50
stockout cost=$10
Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross Requirements | 30 | 20 | 40 | 10 | 40 | 60 | 20 | 80 | 10 | 90 | 70 | 10 |
1. Develop a lot for lot solution and calculate total relevant costs for the data in the above tables.
2. Develop a EOQ solution and calculate total relevant costs for the data in the above tables.
3. Develop a POQ solution and calculate total relevant costs for the data in the above tables.
4. Using the data above which is the best technique and why?
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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