Component K has the following weekly demand requirements: The ordering cost for this item is $100/order and

Question:

Component K has the following weekly demand requirements:

The ordering cost for this item is $100/order and holding cost is $1/unit/week (in U.S. dollars). To develop a material requirements plan for this component, which of the following lot-sizing techniques will yield the lowest total cost?

1. EOQ.

2. 2-week fixed-period ordering.

3. Lot-for-lot.

4. Part-period balancing (PPB).

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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Question Posted: Nov 30, 2018 06:01 AM

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Component K has the following weekly demand requirements: The ordering cost for this item is $100/order and

Question:

Week 8. 4 6. 75 90 40 85 Demand 60 60 130 65 100 30

Step by Step Answer:

1 EOQ Product X Low level code 0 Lead time 1 week WEEK 1 2 3 4 5 6 7 8 9 Gross requirements 60 90 60 ...View the full answer

Operations Management Managing Global Supply Chains

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