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Above is the MOM example. The question is below. Figure A.6 Example of McLaren's Order Moment Lot-Sizing Procedure (Continued) Required Receipts Schedule PERIOD NET REQUIREMENTS
Above is the MOM example. The question is below.
Figure A.6 Example of McLaren's Order Moment Lot-Sizing Procedure (Continued) Required Receipts Schedule PERIOD NET REQUIREMENTS REQUIRED RECEIPTS 1 80 180 2. 100 0 3 124 224 4 50 5 5 50 6 100 225 7 125 00 125 225 9 100 10 100 150 11 50 12 100 100 Total ordering cost = 6 x $92 = $552.00 Total inventory cost = 525 x 0.5/period = 262.50 Total ordering plus carrying costs = $814.50 5. McLaren's Order Moment (MOM) The McLaren order moment (MOM), in its simplest version, accumulates require- ments for consecutive periods into a tentative order until the accumulated part-periods (one unit carried in inventory for one period) reach or exceed a specified part-period target. The MOM method compares the carrying cost incurred by including the require- ments above the target with the cost of placing a new order. Either the requirements are 10. Apply the McLaren's order moment (MOM) lot-sizing procedure to the following 12 periods of requirements data, indicating order receipts' size and period. Assume order costs are $100/order placed and inventory carrying cost is $2.00/unit/period. Calculate the inventory carrying costs on the basis of ending inventory values. (See Appendix 6A for an example of the MOM procedure). PERIOD 1 2 3 4 5 6 7 8 9 10 11 12 Requirements 60 20 25 50 50 15 25 60 35 60 70 45 I need to see the excel formulas as well. Thank You
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