answer question 6 please

PO Releases 13000 va 13000 13004 Ta 6. Calculate the total inventory cost for component M during the eight week period for the fixed-period-of-two ordering policy. Note that, for each week, the inventory cost may include a fixed cost and a holding cost. We assume that the per order fixed cost is $500/order, and the unit holding cost is $1 per item per week. The fixed cost is incurred each time when the company places an order. More precisely, if the company places an order at the beginning of a week, then the company incurs the fixed cost for this week, otherwise, the fixed cost for the week is zero. The holding cost is calculated according to the number of remaining items at the end of each week. For example, if 10 units of component M are remaining at the end of a week, then the holding cost for this week is 10 x $1 = $10. [4 marks] Answer: 7. Calculate the total inventory cost for component M during the eight week period for the fixed-order-quantity ordering policy (with lot size = 1300 units). The per order fixed cost is still $500/order, and the unit holding cost is still $1 per item per week. Which policy. the fixed-period-of-two or the fixed-order-quantity with lot size of 1300 units is better? [Hint: Compare the total inventory costs for two policies to see which one is smaller.] [4 marks] Answer: PO Releases 13000 va 13000 13004 Ta 6. Calculate the total inventory cost for component M during the eight week period for the fixed-period-of-two ordering policy. Note that, for each week, the inventory cost may include a fixed cost and a holding cost. We assume that the per order fixed cost is $500/order, and the unit holding cost is $1 per item per week. The fixed cost is incurred each time when the company places an order. More precisely, if the company places an order at the beginning of a week, then the company incurs the fixed cost for this week, otherwise, the fixed cost for the week is zero. The holding cost is calculated according to the number of remaining items at the end of each week. For example, if 10 units of component M are remaining at the end of a week, then the holding cost for this week is 10 x $1 = $10. [4 marks] Answer: 7. Calculate the total inventory cost for component M during the eight week period for the fixed-order-quantity ordering policy (with lot size = 1300 units). The per order fixed cost is still $500/order, and the unit holding cost is still $1 per item per week. Which policy. the fixed-period-of-two or the fixed-order-quantity with lot size of 1300 units is better? [Hint: Compare the total inventory costs for two policies to see which one is smaller.] [4 marks]