M. de Koster, of Rene Enterprises, has the master production plan shown below: Period (weeks) 1 2

Question:

M. de Koster, of Rene Enterprises, has the master production plan shown below:
Period (weeks) 1 2 3 4 5 6 7 8 9
Gross requirements 15 20 10 25

Lead time = 1 period; setup cost = $ 200; holding cost = $ 10 per week; stockout cost = $ 10 per week. Your job is to develop an ordering plan and costs for:
a) Lot- for- lot.
b) EOQ.
c) POQ.
d) Which plan has the lowest cost?