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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