Given an order cost of $100,a,per period holding cost of $.50,and the following requirements schedule: What is the part-period method lot size for the order for the first period?
A)120
B)200
C)280
D)350
E)450

Question

Given an order cost of $100,a,per period holding cost of $.50,and the following requirements schedule:  What is the part-period method lot size for the order for the first period?
A)120 
B)200 
C)280 
D)350 
E)450

Quizplus · Accepted Answer

Using the part-period method formula: 
Q = √((2DS)/(H(1-(d/Q)))) 
Q = √((2(100)(160))/(.50(1-(160/400)))) 
Q = 280

Given an Order Cost of $100,a,per Period Holding Cost of $.50,and