Consider a company facing a demand pattern and costs as follows:

a. Construct a replenishment schedule and calculate the associated costs using the Lot for Lot method. 

b. Repeat using the Fixed Economic Order Quantity method. 

c. Repeat using the Periodic Order Quantity method. 

d. Repeat using the Wagner–Whitin Algorithm. (Note: Students are required to solve this problem step-by-step similar to the lecture note.)

Transcribed Image Text:

Month January February March April May June July August September October November December At ht Sequential Requirements Number (units) 1 20 2 40 110 120 60 30 20 3456 6 7 8 9 10 Total 11 12 $25.00 $ 0.20 30 80 120 130 40 800 Month January February March April May June July August September October November December At ht Sequential Requirements Number (units) 1 20 2 40 110 120 60 30 20 3456 6 7 8 9 10 Total 11 12 $25.00 $ 0.20 30 80 120 130 40 800

Answer rating: 100% (QA)

A Replenishment Schedule and Associated Costs using Lot for Lot Method The Lot for Lot method is a simple inventory replenishment method in which the order quantity is equal to the requirements for th... View the full answer