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.

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?

1) Carrying = $1,970, Ordering = $125

2) Carrying = $140, Ordering = $1,250

3) Carrying = $450, Ordering = $390

4) Carrying = $120, Ordering = $1,460

5) Carrying = $1,045, Ordering = $168