Question: Product A MRP information is as below: Ordering cost = $250, inventory holding cost $2 per unit per week. There are 120 units beginning inventory;
Product A MRP information is as below: Ordering cost = $250, inventory holding cost $2 per unit per week. There are 120 units beginning inventory; there are no scheduled receipts at the beginning; EOQ = 122 units. Lead time 1 week 2 3 4 5 6 80 90 50 30 60 Gross requirements On Hand Inventory NET Requirements Planned receipts Planned orders Hint: Inventory carrying cost = Sum (cost per unit per week x ending inventory of a week) Ordering cost ordering cost per order x # of orders = Using lot for lot method, what are your inventory carrying and ordering costs? (6 points) Carrying $120, Ordering = $1,460 Carrying $1,970, Ordering = $125 = Carrying $1,045, Ordering = $168 Carrying $450, Ordering = $390 = Carrying $140, Ordering = $1,250 = 1 50
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