Question: Setup Cost = $754 per setup Holding cost = $0.44 per unit per week Week 1 2 3 4 5 6 7 8 9 10

Setup Cost = $754 per setup

Holding cost = $0.44 per unit per week

Week 1 2 3 4 5 6 7 8 9 10 11 12 Requirements 124 400 332 457 241 410 249 309 480 425 145 373 Order Quantity Beg. Inventory End Inventory Setup Cost Holding Cost Total Holding Cost If you are going to use Part Period Balancing and just order enough for Weeks 1, 2 and 3, how much higher (positive value) or lower (negative value) would your holding cost be than your setup cost?

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