QUESTION 6 A company periodically produces a part that is a basic com- ponent of an assembled product. Each time the part is run, A fixed cost of $125 is incurred. The cost to hold one unit for a week is estimated to be $1.65. For the demand (net requirements) shown below, determine the quantity and timing of production runs using the part-period method. Demand (units) Week 1 2 3 4 5 6 7 40 20 100 20 20 80

A company periodically produces a part that is a basic component of an assembled product. Each time the part is run, fixed cost of $125 is incurred. The cost to hold one unit for a week is estimated to be $1.65. For the demand (net requirements) shown below, determine the quantity and timing of production runs using the part-period method