Question: 1 . Consider the following information about an end - product item: Ordering cost = $ 4 5 / order . Average usage = 1
Consider the following information about an endproduct item:
Ordering cost $order
Average usage unitsweek
Inventory carrying cost $unitweek
a How many orders should we place per year weeks to replenish inventory of the item
based on average weekly demand?
b Given the following timephased net requirements from an MRP record for this item, determine the sequence of planned orders using economic order quantity and periodic order
quantity procedures. Assume lead time equals zero and current onhand inventory equals zero.
Calculate the inventory carrying cost on the basis of weekly ending inventory values. Which
procedure produces the lowest total cost for the eightweek period?
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