Question: Component X has the following weekly demand requirements: The ordering cost for this item is $50/order and holding cost is $2/unit/week (in U.S. dollars). To

Component X has the following weekly demand requirements:

1 6. 8. 10 Week 90 60 65 75 100 40 85 55 60 130 Demand 40 LO


The ordering cost for this item is $50/order and holding cost is $2/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).

1 6. 8. 10 Week 90 60 65 75 100 40 85 55 60 130 Demand 40 LO

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1 EOQ 2 Product X Low level code 0 Lead time 1 week Lot size L4L WEEK 1 2 3 4 5 6 7 8 9 10 Gross req... View full answer

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