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Using the gross requirements schedule below*, prepare an alternative ordering system POQ that orders every 3 weeks for 3 weeks ahead (a periodic order quantity)

Using the gross requirements schedule below*, prepare an alternative ordering system POQ that orders every 3 weeks for 3 weeks ahead (a periodic order quantity) as a Lot Sizing technique. What is the cost of this ordering system? Period 1 2 3 4 5 6 7 8 9 10 Gross requirements 45 20 50 0 10 50 30 0 30 55 *Holding cost=$1/unit/week; setup cost=$200; lead time=1 week; beginning inventory=45 units.

Period

1

2

3

4

5

6

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10

Gross requirements

45

20

50

0

10

50

30

0

30

55

On-hand at beginning of period

45

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On-hand at end of period

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Net requirements

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Order receipt

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Order release

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The cost of this ordering system is

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