Question: 4) Setup Cost = $489 per setup Holding cost = $1.4 per unit per week Week 1 2 3 4 5 6 7 8 9
4) Setup Cost = $489 per setup
Holding cost = $1.4 per unit per week
| Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| Requirements | 255 | 463 | 198 | 151 | 490 | 471 | 143 | 255 | 162 | 126 | 257 | 286 |
| Order Quantity | ||||||||||||
| Beg. Inventory | ||||||||||||
| End Inventory | ||||||||||||
| Setup Cost | ||||||||||||
| Holding Cost | ||||||||||||
| Total Holding Cost |
Determine the EOQ based on the average demand for the 12 weeks available.
5) Setup Cost = $762 per setup
Holding cost = $0.38 per unit per week
| Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| Requirements | 360 | 202 | 389 | 292 | 473 | 457 | 424 | 409 | 317 | 304 | 408 | 287 |
| Order Quantity | ||||||||||||
| Beg. Inventory | ||||||||||||
| End Inventory | ||||||||||||
| Setup Cost | ||||||||||||
| Holding Cost | ||||||||||||
| Total Holding Cost |
Determine the holding cost for Week 1 given the order quantity is EOQ based on the average demand for the 12 weeks available.
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