The ordering plan and cost for lot for lot. Introduction: Lot for Lot: The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period. Net requirements plan: The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

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Answer 1

Question

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

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The annual requirements for a particular raw material are 2,000 units costing Re. 1 each to the manufacturer. The ordering cost is Rs. 10 per order and the carrying cost 16% per annum of the average inventory value. Find and explain the economic order quantity and the total inventory cost per annum.

Answer 2

Question

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Answer 6

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 7

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 8

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 9

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 10

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 11

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 12

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Answer 13

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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Solution Summary: The author explains that the lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

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To determine: The plan which has the lowest cost.

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