Question
Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $2 per month and
Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $2 per month and each setup costs $80. Lead time is 0 months.
Month1234567Requirement400150200150100150250Solution Requirements
Utilize Microsoft Excel to complete the following steps. Please create a different sheet on the same Excel file for each of the below prompts:
1. Calculate the planned order releases using the EOQ technique. What are the total costs, including the holding cost of any inventory left over after month 7?
2. Calculate the planned order releases using the POQ technique. What are the total costs, including the holding cost of any inventory left over after month 7?
3. Which strategy should Clancys Motors choose, and why?
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Small Business Management Launching & Growing Entrepreneurial Ventures
Authors: Justin Longenecker, William Petty, Leslie Palich, Frank Hoy
17th edition
9781285972565, 1133947751, 1285972562, 978-1133947752
