Question: Using the following data, what is the total ordering cost to meet the gross requirements? Item: Kitchen Sink Lead Time = 1 week Lot size
Using the following data, what is the total ordering cost to meet the gross requirements?
| Item: Kitchen Sink | Lead Time = 1 week | |||
| Lot size rule: FOQ = 5 | Beginning Inventory = 2 | |||
| 1 | 2 | 3 | 4 | |
|---|---|---|---|---|
| Gross Requirements | 0 | 2 | 3 | 1 |
Order costs = $25/order
$0
$25
$50
$75
$100
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