The POQ would call for setting the lot size equal to three periods of demand. For the example in Section 8.2, the resulting planned order release would be 116, 0, 0, 150, 0, 0, 135, 0, 0, 38.

a. Compare the cost of the policy obtained by this method for the example in Section

b. What are the advantages of this approach over EOQ?

c. Do you think that this method will be more cost effective in general than the heuristic methods discussed in Section 8.2?

d. Solve Problem 17 using this method, and compare the total holding and setup cost with that obtained by the other methods.

e. Solve Problem 49 using this method, and compare the total holding and setup cost with that obtained by the other methods.