Question

A product has the following gross requirements. Which is cheaperue004lot-for-lot, part period balance, or EOQ lot sizing?


Week 1 2 3 4 5 6
Requirements 50 80 90 50 30 60

Other data for this scenario include: setup cost = $250, inventory holding cost $2 per unit per week. There is no beginning inventory; there are no scheduled receipts. The usage pattern is expected to continue for the remainder of the year.

Answer

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