The table shows the gross requirements of a product. You are also given the following information: Holding cost = $2/week; Ordering (Setup) cost = $95; Lead time = 1 week; SS=0; Beginning on hand inventory=190. Calculate the total cost that includes the ordering cost and the holding cost when you use the L4L lot sizing rule.
The table shows the gross requirements of a product. You are also given the following information: Holding cost = $2/week; Ordering (Setup) cost = $95; Lead time = 1 week; SS=0; Beginning on hand inventory=190. Calculate the total cost that includes the ordering cost and the holding cost when you use the L4L lot sizing rule.
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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The table shows the gross requirements of a product. You are also given the following information: Holding cost = $2/week; Ordering (Setup) cost = $95; Lead time = 1 week; SS=0; Beginning on hand inventory=190. Calculate the total cost that includes the ordering cost and the holding cost when you use the L4L lot sizing rule.
Transcribed Image Text:Week
Gross requirements
1 2 3 4 5 6 7 8 9 10
10 70 90 20 80 10 10 10 70 0
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- Where did you calculate the 310 from and how? Please use simple math, how do you know that you are supposed to multiply the setup cost(95) by 5,
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