Question: Using the gross requirements schedule below*, prepare an alternative ordering system POQ that orders every 3 weeks for 3 weeks ahead (a periodic order quantity)

Using the gross requirements schedule below*, prepare an alternative ordering system POQ that orders every 3 weeks for 3 weeks ahead (a periodic order quantity) as a Lot Sizing technique. What is the cost of this ordering system? Period 1 2 3 4 5 6 7 8 9 10 Gross requirements 45 20 50 0 10 50 30 0 30 55 *Holding cost=$1/unit/week; setup cost=$200; lead time=1 week; beginning inventory=45 units.

Period

1

2

3

4

5

6

7

8

9

10

Gross requirements

45

20

50

0

10

50

30

0

30

55

On-hand at beginning of period

45

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

On-hand at end of period

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

Net requirements

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

Order receipt

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

Order release

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

enter your response here

The cost of this ordering system is

$enter your response here

(enter your response as a whole number).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!