Component X has the following weekly demand requirements: The ordering cost for this item is $50/order and
Question:
The ordering cost for this item is $50/order and holding cost is $2/unit/week (in U.S. dollars). To develop a material requirements plan for this component, which of the following lot-sizing techniques will yield the lowest total cost?
1. EOQ.
2. 2-week fixed-period ordering.
3. Lot-for-lot.
4. Part-period balancing (PPB).
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Step by Step Answer:
1 EOQ 2 Product X Low level code 0 Lead time 1 week Lot size L4L WEEK 1 2 3 4 5 6 7 8 9 10 Gross req...View the full answer
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Related Book For 
Operations Management Managing Global Supply Chains
ISBN: 978-1506302935
1st edition
Authors: Ray R. Venkataraman, Jeffrey K. Pinto
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