Question

Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $.75 per month and each setup costs $150. Lead time is 0 months. Calculate the planned order releases using: (a) the EOQ technique, and (b) the POQ technique.

What are the costs of each plan, including the holding cost of any inventory left over after month 7?


Month 1 2 3 4 5 6 7
Requirement 100 150 200 150 100 150 250

Answer

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