Holding cost is $2.50/unit/week (period)

setup cost: $175

Lead time 1 week

beginning inventory 50

stockout cost=$10

Period	1	2	3	4	5	6	7	8	9	10	11	12
Gross Requirements	30	20	40	10	40	60	20	80	10	90	70	10

1. Develop a lot for lot solution and calculate total relevant costs for the data in the above tables.

2. Develop a EOQ solution and calculate total relevant costs for the data in the above tables.

3. Develop a POQ solution and calculate total relevant costs for the data in the above tables.

4. Using the data above which is the best technique and why?

Answer rating: 100% (QA)

Solution 1 Lot for Lot Solution The lot for lot solution involves determining the optimal production quantity for each period based on the gross requirements and the holding cost per unit per week Per... View the full answer