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
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 1 2 3 4 5 6 50 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 = $1,970, Ordering $125 Carrying = $120, Ordering = $1,460 O Carrying = $1,045, Ordering $168 E O Carrying $450, Ordering = $390 O Carrying = $140, Ordering = $1,250

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!