Question

The MRP gross requirements for Item A are shown here for the next 10 weeks. Lead time for A is three weeks and setup cost is $10. There is a carrying cost of $0.010 per unit per week. Beginning inventory is 85 units.

WEEK

1

2

3

4

5

6

7

8

9

10

Gross requirements

20

55

10

22

70

87

19

63

210

58

Use the least total cost and the least unit cost lot-sizing methods to determine the quantity to order with the first order released with each method and which periods' requirements will be covered by that order.

	Quantity Ordered	Periods Covered
Least total cost		(Click to select)4 to 94 to 54 to 644 to 109 to 104 to 794 to 8
Least unit cost		(Click to select)4 to 84 to 94 to 54 to 104 to 694 to 79 to 104

Answer 1

Below is the screenshot of the formula applied -

Below is the screenshot of the result calculated -