Solved

The Lot Size Is 60 Units and the Units on Hand

Question 21

Short Answer

The lot size is 60 units and the units on hand are 0 units.What is the total cost when using an average inventory value? The holding cost is $3 per unit per period and the ordering cost is $500 per order.No lead time exists.
 Lot  size: 60x Period 12345678 GR 8090125290125804560 SR 15060 POH  NR  POR \begin{array} { | c | c | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Lot } \\\text { size: } \\60 \mathrm { x }\end{array} & { \text { Period } } \\\hline & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\\hline \text { GR } & 80 & 90 & 125 & 290 & 125 & 80 & 45 & 60 \\\hline \text { SR } & & 150 & & 60 & & & & \\\hline \text { POH } & & & & & & & & \\\hline \text { NR } & & & & & & & & \\\hline \text { POR } & & & & & & & & \\\hline\end{array}

Correct Answer:

verifed

Verified

Total cost...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents