The following table shows the demand for fans manufactured by Leonard's Fan Company. The holding cost for
Question:
The following table shows the demand for fans manufactured by Leonard's Fan Company. The holding cost for that item is $2 per month and each setup costs $80. Lead time is 0 months.
Month 1 2 3 4 5 6 7
Requirement 400 150 200 150 100 150 250
Calculate the planned order releases using: (a) the EOQ technique, and (b) the POQ technique. What are the costs of each plan, including the holding cost of any inventory left over after month 7?
Quantitative Methods for Business
ISBN: 978-0840062345
12th edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam