A manufacturer occasionally needs a component in the manufacture of certain products. Its cost per startup is $125 and the cost of holding a component in stock is $1.65 per week. The gross needs for the next few weeks are as follows:

Week	1	2	3	4	5	6	7	8
Raw needs	0	40	20	100	20	0	20	80

Knowing that the manufacturing time is one week and that there is no stock available, determine the planned receptions and launches as well as the total costs if the manufacturer decides to use:

1. The economical quantity method to order

2. The Fixed Interval Method

3. The subdivision piece period

Answer rating: 100% (QA)

Answer Step 1 Given Demand 040201002002080 280 Ordering cost ... View the full answer