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Question 4 (25 marks): A partially completed inventory record for the motor subassembly is shown in the following table. a L4L 0 2 3 4
Question 4 (25 marks): A partially completed inventory record for the motor subassembly is shown in the following table. a L4L 0 2 3 4 5 6 8 9 10 Method Holding Cost Setup Cost Total Cost Based on the lead time and costs, determine the minimum inventory cost for the next 10 weeks of Gross Requirement 0 80 50 35 22 55 20 30 25 10 LAL demand with the following techniques. Schedule Reciept EOQ Project onhand 20 POQ a) Lot 4 Lot (5 marks) Net Requirement b) EOQ. (10 marks) Planned Reciept c) POQ (10 marks) Planned order Release 10 bEOQ 0 1 2 3 4 5 6 7 8 9 10 11 Gross Requirement 0 80 50 35 22 55 20 30 25 10 EOQ 12 Lead time (Lt) 2 Schedule Reciept 13 Holding cost (H)/week 1.00 Project onhand 20 2DS 14 Setup Cost (S)/order 50 Net Requirement Qo = H 15 Annual Demand 1,700 Planned Reciept 16 Planned order Release 17 18 19 1 2 3 4 5 6 7 8 9 10 c POO 0 1 2 3 4 5 6 7 8 9 10 Daily Sales 20 Gross Requirement 80 50 35 22 55 20 30 25 10 Gross Requirement 80 50 35 22 55 20 30 25 10 21 Schedule Reciept Schedule Reciept 22 Project onhand 20 Project onhand 20 23 Net Requirement Vet Requirement 24 Planned Reciept Planned Reciept 25 Planned order Release Planned order Release 26 27 28 29 30 31 32 33 34
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