The Kim Sports Company has been using MRP to manufacture sports equipment for several years. Recently,...

 

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The Kim Sports Company has been using MRP to manufacture sports equipment for several years. Recently, John, the operations manager, decided to investigate the use of lot sizing for MRP-generated orders. Ordering costs are $60 per order, and carrying costs are $1 per unit per week. The beginning inventory is 30 units, and lead time is one week, and the company has a gross material requirement plan as shown in Table Q2 (c). Determine the costs fort ii. 111. iv. Lot-for-Lot (L4L) Economic Order Quantity (EOQ) Periodic Order Quantity (POQ) The cheapest lot sizing technique Period (week) Gross Requirements 1 30 Table Q2(c) 2 50 3 20 4 10 5 40 The Kim Sports Company has been using MRP to manufacture sports equipment for several years. Recently, John, the operations manager, decided to investigate the use of lot sizing for MRP-generated orders. Ordering costs are $60 per order, and carrying costs are $1 per unit per week. The beginning inventory is 30 units, and lead time is one week, and the company has a gross material requirement plan as shown in Table Q2 (c). Determine the costs fort ii. 111. iv. Lot-for-Lot (L4L) Economic Order Quantity (EOQ) Periodic Order Quantity (POQ) The cheapest lot sizing technique Period (week) Gross Requirements 1 30 Table Q2(c) 2 50 3 20 4 10 5 40