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Complete the Following MRP Record Using EOQ Lot Sizing Technique

Question 8

Multiple Choice

Complete the following MRP record using EOQ lot sizing technique.The holding cost is $3 per unit per period and the ordering cost is $500 per order.What is the ordering cost and holding costs using end inventory values? Assume that the lot size cannot exceed the EOQ size and back ordering is possible without any additional costs.(ordering cost/holding costs)
 EOQ  Period 012345678 GR 60901251801505045060 SR 15060 PA 10 NR  POR \begin{array} { | c | c | c | c | c | c | c | c | c | c | } \hline { \text { EOQ } } & { \text { Period } } \\\hline& 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\\hline \text { GR } & & 60 & 90 & 125 & 180 & 150 & 50 & 450 & 60 \\\hline \text { SR } & & & 150 & & 60 & & & & \\\hline \text { PA } & 10 & & & & & & & & \\\hline \text { NR } & & & & & & & & & \\\hline \text { POR } & & & & & & & & & \\\hline\end{array}


A) ($3,188/$3,440)
B) ($1,440/$2,000)
C) ($3,188/$2,000)
D) ($2,000/$1,440)

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