The Big Country Manufacturing Company is trying to decide which of several lot sizing procedures to use for its MRP system. The following information pertains to one of its fast-moving component parts:
Setup cost = $75/order.
Inventory cost = $1.25/unit/week (Notice the unit change)
Current inventory balance = 0 units.

a. Apply the EOQ (only integer multiples of the EOQ can be ordered), POQ, and PPB lot sizing procedures and show the total cost resulting from each procedure. Calculate inventory carrying costs on the basis of average inventory values. Assume orders are received into the beginning inventory.
b. Indicate advantages and disadvantages of using each procedure suggested in part a.

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