5.) Beginning inventory is 40 units. The holding cost-$2.5 per unit per week, setup cost $150 and LT 1 week. Devele the minimum cost/period to determine when and how much to order and calculate the total cost. Using MRP. Period 8 Gross Req. 30 0 400 30 70 2010

5.) Beginning inventory is 40 units. The holding cost-$2.5 per unit per week, setup cost $150 and LT 1 week. Devele the minimum cost/period to determine when and how much to order and calculate the total cost. Using MRP. Period 8 Gross Req. 30 0 400 30 70 2010

 

Solution

First non-zero Net requirement occurs in week 4.

So start with week 3, evaluate the cost per period for trial lot sizes starting from lot size equal to one period requirement

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