Develop an EOQ solution and calculate total relevant costs for the data in the preceding table. PERIODGross1 2 3 4 5 6 7 8 9 10 11 12JEHERE30requirements30 70 2010 80TAT*Holding cost $2.50/unit/week; setup cost = $150; lead time = 1 week;beginning inventory = 40; stockout cost = $10.4050

Gross demand D = 30+40+30+70+20+10+80+50=330 Holding cost H = 2.50 Set up cost S = 150 EOQ = 2×D×SH…

Answered: PERIOD Gross 1 2 3 4 5 6 7 8 9 10 11 12…

PERIOD Gross 1 2 3 4 5 6 7 8 9 10 11 12 requirements 30 40 30 70 20 02 10 80 *Holding cost = $2.50/unit/week; setup cost = $150; lead time = 1 week; beginning inventory = 40; stockout cost = $10. 50

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Develop an EOQ solution and calculate total relevant costs for the data in the preceding table.

PERIOD
Gross
1 2 3 4 5 6 7 8 9 10 11 12
JEHERE
30
requirements
30 70 20
10 80
TAT
*Holding cost $2.50/unit/week; setup cost = $150; lead time = 1 week;
beginning inventory = 40; stockout cost = $10.
40
50

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