Item A is one of the products manufactured at ABC Manufacturing. Each order for producing...
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Item A is one of the products manufactured at ABC Manufacturing. ● Each order for producing the product has a cost of $140/order, regardless of the number of units ordered. ● The lead time for placing the order is 2 week(s). ● The inventory cost is $2/ unit/week and the onhand inventory at the beginning of week 1 is 165 units. The gross requirement for Item A is specified for the beginning of weeks 1 through 8 in the table that follows. Item A Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 70 70 65 55 45 0 70 70 Gross Requirement Onhand Inventory Net Requirement Planned Order Receipt Planned Order Release For a "lot size using Part Period" scheduling policy, determine the total cost for the 8 week period. Assume that inventory is tracked at the end of the period. The number of units ordered can be a multiple of the Part Period, depending on the computed net requirement in a week. What is total number of units held in inventory during the planning period (i.e. weeks 1 through 8)? What is number of orders during the planning period? What is the total cost of inventory and ordering for the planning period?
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On hand inventory at the beginning of week 1 is 165 units Gross requirement for weeks 1 to 8 is give View the full answer
Related Book For
Management Accounting Information for DecisionMaking and Strategy Execution
ISBN: 9780137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
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