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The MRP gross requirements for Item A are shown below for the next 4 weeks. Ordering cost is $30 per order. There is a carrying
The MRP gross requirements for Item A are shown below for the next 4 weeks. Ordering cost is $30 per order. There is a carrying cost of $3 per unit per week. The price of Item A is $72 per item. However, a quantity discount price of $68 per item is offered if the quantity purchased is 120 units or more. If the Least Unit Cost rule is used, what lot size should we use? Please show your analysis in the template (green cells) below and fill in the Conclusion. Ordering cost (per order) =$30 Carrying cost (per unit per week) =$3 I Conclusion: We should select a total lot size of units, since that gives us the least unit cost of
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