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The following table shows the demand for fans manufactured by Kuhnya UA Company. The holding cost for that item is $2 per month and each
The following table shows the demand for fans manufactured by Kuhnya UA Company. The holding cost for that item is $2 per month and each setup costs $80. Lead time is 0 months. Calculate the planned order releases using: (a) the EOQ technique, and (b) the POQ technique. What are the costs of each plan, including the holding cost of any inventory left over after month 7?
Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
Requirement | 400 | 150 | 200 | 150 | 100 | 150 | 250 |
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