Question: Lead time is 1 week, setup cost is $ 2 0 0 , and holding cost is $ 1 0 per week. Stockouts are not

Lead time is 1 week, setup cost is $200, and holding cost is $10 per week. Stockouts are not allowed due to company policy (i.e. If there is an expected stock-out, two batches of order size must be placed). Develop an ordering plan and calculate the costs for:
Lot-for-lot ordering policy.
EOQ (Economic order quantity) ordering policy.
POQ (Periodic order quantity) ordering policy.
Which ordering policy is better? Why one of the ordering policies results in a substantially higher cost?

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