Question: A company periodically produces a part that is a basic component of an assembled product. Each time the part is run, a fixed cost of
A company periodically produces a part that is a basic component of an assembled product. Each time the part is run, a fixed cost of $125 is incurred. The cost to hold one unit for a week is estimated to be $1.53.
Week | Demand (units) |
| 1 | 44 |
| 2 | 20 |
| 3 | 96 |
| 4 | 24 |
| 5 | -- |
| 6 | 20 |
| 7 | 72 |
For the demand (net requirements) shown above, determine the quantity and timing of production runs using the part-period method. Produce units in week . Produce units in week . Produce units in week .
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