The MRP gross requirements for Item A are shown here for the next 10 weeks. Lead time for A is three weeks and setup cost is $12. There is a carrying cost of $0.015 per unit per week. Beginning inventory is 75 units. Gross requirements 1 25 Least total cost Least unit cost 2 45 3 5 Quantity Ordered 4 20 5 70 Period WEEK 6 70 7 20 Use the least total cost and the least unit cost lot-sizing method to determine what quantity the first order should be released and for which period. 8 50 9 10 195 35

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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Problem 21-20 (Algo)
The MRP gross requirements for Item A are shown here for the next 10 weeks. Lead time for A is three weeks and setup cost is $12.
There is a carrying cost of $0.015 per unit per week. Beginning inventory is 75 units.
Gross requirements
1
25
Least total cost
Least unit cost
2
45
3
5
Quantity Ordered
4
20
5
70
Period
WEEK
6
70
7
20
8
50
Use the least total cost and the least unit cost lot-sizing method to determine what quantity the first order should be released and for
which period.
9
195
10
35
Transcribed Image Text:Problem 21-20 (Algo) The MRP gross requirements for Item A are shown here for the next 10 weeks. Lead time for A is three weeks and setup cost is $12. There is a carrying cost of $0.015 per unit per week. Beginning inventory is 75 units. Gross requirements 1 25 Least total cost Least unit cost 2 45 3 5 Quantity Ordered 4 20 5 70 Period WEEK 6 70 7 20 8 50 Use the least total cost and the least unit cost lot-sizing method to determine what quantity the first order should be released and for which period. 9 195 10 35
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