Question: Using the data and Table provided below answer the question (in red font) that follows. Consider the following information about an end-product item: Ordering cost
Using the data and Table provided below answer the question (in red font) that follows. Consider the following information about an end-product item: Ordering cost = $51/order. Average usage = 12 units/week. Inventory carrying cost = $1/unit/week. Given the following time-phased net requirements from an MRP record for this item, determine the sequence of planned orders using economic order quantity and periodic order quantity procedures. Assume lead time equals zero and current on-hand inventory equals zero. EOQ = Week 1 2 3 4 5 6 7 8 Requirements 15 2 10 12 6 0 14 9 Order Qty Beginning Inv. Ending Inv. Average Inv. POQ = Week 1 2 3 4 5 6 7 8 Requirements 15 2 10 12 6 0 14 9 Order Qty Beginning Inv. Ending Inv. Average Inv. EOQ POQ Ordering Costs Inv. Carrying Costs Total Costs How many orders were placed or the POQ technique?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
