Given the following data:PeriodGross1 2 3 45 6 7 8Requirements 20 20 50 50 80 8050 50The beginning inventory is 0 and there are no scheduled receipts. The order cost is $50 and theholding cost is $1 per part per period.What are the order costs, carrying costs, and totals cost over the 8 periods using the period orderquantity rule with POQ = 2?Oorder costs $200, carrying costs $200, and total costs $400Oorder costs $400, carrying costs $340, and total costs = $740Oorder costs $200, carrying costs $340, and total costs $540Oorder costs $400, carrying costs $0, and total costs = $400

Answered: Given the following data: Period Gross…

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...

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Discuss considerations that should be fully taken into account when developing inventory related relevant costs for use in an economic order quantity (EOQ) model. Why do conflicts arise between the EOQ model's optimal order quantity and the order quantity that managers regard as optimal?
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