7. Chambers Inc. is considering using the PPB lot-sizing approach, but first it wants to compare the

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7. Chambers Inc. is considering using the PPB lot-sizing approach, but first it wants to compare the approach to its current lot-sizing method, EOQ.

Chambers has selected a sample component for the comparison, and its requirements are given below. Ordering cost is $27 per order, and carrying cost is $0.25 per unit per period. (Use average inventory.) Using the sample component data, construct schedules using PBB and EOQ.

Also, compare the costs of these schedules.

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Manufacturing Planning And Control For Supply Chain Management The CPIM Reference

ISBN: 9781265138516

3rd Edition

Authors: F. Robert Jacobs, William Lee Berry, D. Clay Whybark, Thomas E. Vollmann

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