Given an ordering cost of $200, a holding cost of $2 per unit, and a negligible lead

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Given an ordering cost of $200, a holding cost of $2 per unit, and a negligible lead time, examine the following demand patterns and predict which lot sizing technique would result in the lowest total cost. Verify yourpredictions.

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Operations Management Creating Value Along the Supply Chain

ISBN: 978-0470525906

7th Edition

Authors: Roberta S. Russell, Bernard W. Taylor

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Question Posted: Oct 03, 2012 07:20 AM

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Given an ordering cost of $200, a holding cost of $2 per unit, and a negligible lead

Question:

a. Period Gross Requirements 50 5 50 50 b. Period Gross Requirements 50 050 10 C. Period Gross Requirements 50 50 1010 d. Period Gross Requirements 50 1010 50

Step by Step Answer:

a Beg Inventory 0 200 Exact 200 10000 5000 200 Item A LLC 0 Period Lot Size L4L 1 LT 0 1 2 3 4 Gross Requirements 50 50 50 50 Scheduled Receipts Projected on Hand 0 0 0 0 0 Net Requirements 50 50 50 5...View the full answer

Operations Management Creating Value Along the Supply Chain

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