The manager estimates the demand for the product for the next months to be 75, 50,...

 

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The manager estimates the demand for the product for the next months to be 75, 50, 75, 60, and 60. To place an order for the product costs $100 regardless of the order size, and he estimates that holding one product per month will cost him $1.2. a. Apply silver meal method to order the correct quantity each period. What is the total cost of holding and ordering? (15 pts) b. Apply part period balancing method to order the correct quantity each period. What is the total cost of holding and ordering? (15 pts) The manager estimates the demand for the product for the next months to be 75, 50, 75, 60, and 60. To place an order for the product costs $100 regardless of the order size, and he estimates that holding one product per month will cost him $1.2. a. Apply silver meal method to order the correct quantity each period. What is the total cost of holding and ordering? (15 pts) b. Apply part period balancing method to order the correct quantity each period. What is the total cost of holding and ordering? (15 pts)

Answer rating: 100% (QA)

a SilverMeal Method The SilverMeal method is an inventory control method used to determine the optimal order quantity for each period based on the est... View the full answer