Question: Develop an EOQ solution and calculate total relevant costs for the data in the following table. Stockout costs equal $10 per unit. Holding cost is
Develop an EOQ solution and calculate total relevant costs for the data in the following table. Stockout costs equal
$10
per unit. Holding cost is
$4.00/unit/week;
setup cost is
$170;
lead time is
1
week;
beginning inventory is
60
units.
| Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| Gross requirements | 45 | 0 | 45 | 15 | 40 | 50 | 25 | 0 | 10 | 70 | 0 | 40 |
The economical order quantity (EOQ) is
5050
units (round your response to the nearest whole
number).
Compute the projected on-hand inventory, the net requirement, and the planned receipt (enter your responses as whole numbers).
| Level: | Parent: | Quantity: | |||||||||||
| Item: | Lead Time: 1 | Lot Size: EOQ | |||||||||||
| Week No. | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
| Gross requirements | 45 | 0 | 45 | 15 | 40 | 50 | 25 | 0 | 10 | 70 | 0 | 40 | |
| Scheduled receipt | |||||||||||||
| Projected on-hand inventory | 60 | 15 | 15 | 19 | 4 | 13 | nothing | nothing | nothing | nothing | nothing | nothing | |
| Net requirements | 0 | 0 | 30 | 0 | 36 | 37 | nothing | nothing | nothing | nothing | nothing | nothing | |
| Planned order receipts | nothing | nothing | nothing | nothing | nothing | nothing | nothing | nothing | nothing | nothing | nothing | nothing | |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
