What is the EOQ value?

P' = ?

What is the total setup plus holding cost incurred using the POQ heuristic described to solve this problem?

What is the total setup plus holding cost incurred if we instead use the EOQ heuristic (by using lot sizes that round the EOQ to the nearest integer)?

2b. A popular heuristic lot sizing method is known as the period order quantity (POQ). This method requires determining the average number of periods spanned by the EOQ and choosing the lot size to equal this fixed period supply. Let P be the average number of periods spanned by the EOQ rounded to the nearest integer. That is, if =ni1nri, where n is the planning horizon length, and ri denotes the requirements in period i, then we compute the EOQ using this value of , let P=EOQ, and round P to the nearest integer to obtain P. Once we have the integer P, whenever we produce, we always produce the next P periods' requirements. If, for example, the EOQ equals 139 and =43.9, then P=43.9139=3.17 and P=3. Consider the requirements given below for a six-period problem, and assume K=$180, and h=$0.50 per unit per period