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

Component K has the following weekly demand requirements:

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


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).

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

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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 full answer

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