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The MRP gross requirements for Item X are shown here for the next 10 weeks. Lead time for A is two weeks, and setup cost
The MRP gross requirements for Item X are shown here for the next 10 weeks. Lead time for A is two weeks, and setup cost is $12. There is a carrying cost of $0.02 per unit per week. Beginning inventory is 73 units. 1 20 2 10 3 15 4 45 WEEK 5 6 10 30 7 100 8 20 Gross requirements 9 40 10 150 Use the least total cost lot-sizing method to determine when and for what quantity the first order should be released. Least total cost method indicates that units should be ordered to cover the needs for periods 4 through 10 4 through 7 4 through 9
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