Develop a EOQ solution and calculate total relevant costs for the gross requirements in the following table*. Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20 30 30 30 20 10 40 60 *Holding cost =$ 2.50/unit/week; setup cost =$ 150; lead time =1 week; beginning inventory =40. What is the average demand per week? with 2 decimal places): Calculate Economic Order Quantity (EOQ) Develop a EOQ solution (enter your responses as whole numbers). Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20 30 30 30 20 10 40 60 Scheduled receipt Projected On-hand 40 Net Requirements Setup cost for 12 weeks is $ Carrying cost for 12 weeks is $ The total cost is $
Develop a EOQ solution and calculate total relevant costs for the gross requirements in the following table*. Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20 30 30 30 20 10 40 60 *Holding cost =$ 2.50/unit/week; setup cost =$ 150; lead time =1 week; beginning inventory =40. What is the average demand per week? with 2 decimal places): Calculate Economic Order Quantity (EOQ) Develop a EOQ solution (enter your responses as whole numbers). Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20 30 30 30 20 10 40 60 Scheduled receipt Projected On-hand 40 Net Requirements Setup cost for 12 weeks is $ Carrying cost for 12 weeks is $ The total cost is $
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
Develop a EOQ solution and calculate total relevant costs for the gross requirements in the following table*.
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Period |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
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Gross requirements |
20 |
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30 |
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30 |
30 |
20 |
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10 |
40 |
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60 |
*Holding cost
=$
2.50/unit/week; setup cost
=$
150; lead time
=1 week; beginning inventory
=40.
What is the average demand per week? with 2 decimal places):
Calculate Economic Order Quantity (EOQ)
Develop a EOQ solution (enter your responses as whole numbers).
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Period |
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1 |
2 |
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Gross requirements |
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20 |
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30 |
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30 |
20 |
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10 |
40 |
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60 |
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Projected On-hand |
40 |
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Net Requirements |
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Setup cost for 12 weeks is $
Carrying cost for 12 weeks is
$
The total cost is $
Transcribed Image Text:### Economic Order Quantity (EOQ) Solution and Total Relevant Cost Calculation
**Problem Statement: Develop an EOQ solution and calculate total relevant costs for the gross requirements in the following table.**
#### Table: Gross Requirements by Period
| Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
|--------|----|----|----|----|----|----|----|----|----|----|----|----|
| Gross Requirements | 20 | 30 | 30 | 30 | 20 | 10 | 40 | 60 |
*Parameters:*
- Holding cost = $2.50/unit/week
- Setup cost = $150
- Lead time = 1 week
- Beginning inventory = 40
**Steps:**
1. **Average Demand Calculation:**
*Calculate the average demand per week (with 2 decimal places).*
2. **EOQ Calculation:**
*Calculate Economic Order Quantity (EOQ using whole numbers).*
3. **EOQ Solution Development:**
*Develop an EOQ solution (responses as whole numbers).*
#### Detailed Steps and Calculation Table:
| Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
|--------|----|----|----|----|----|----|----|----|----|----|----|----|
| Gross Requirements | 20 | 30 | 30 | 30 | 20 | 10 | 40 | 60 |
| Scheduled Receipt | | | | | | | | | | | | |
| Projected On-hand | 40 | | | | | | | | | | | |
| Net Requirements | | | | | | | | | | | | |
| Planned Order Receipt | | | | | | | | | | | | |
| Planned Order Release | | |
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