Question: Given the MRP plan for the next 8 weeks below. If the holding cost per unit per week is $84, and setup cost is $95

Given the MRP plan for the next 8 weeks below. If the holding cost per unit per week is $84, and setup cost is $95 per order, calculate the total cost of the plan excluding inventory in week 1, but including the inventory costs in weeks 2 through 8 and include the inventory after week 8. Include week 1 when determining ordering costs. (Round to a whole number)

1

2

3

4

5

6

7

8

Ending Inv

Gross Requirement

70 80 30 50 100 40 0 30

Beg On Hand Inv

50 0 0 0 0 0 0 0

0

Net Requirement

20

80 30 50 100 40 0 30

Planned Order Receipt

20

80 30 50 100 40 0 30

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!