A firm has the following gross requirements for Item F.If ordering costs are $60 per order and carrying costs are $0.50 per period. If L4L ordering is used the planned order releases would be
A)40 in period 1 and 0 in period 3.
B)80 in period 2 and 60 in period 3.
C)60 in period 2 and 80 in period 3.
D)0 in period 1 and 40 in period 3.

Question

A firm has the following gross requirements for Item F.If ordering costs are $60 per order and carrying costs are $0.50 per period.  If L4L ordering is used the planned order releases would be
A)40 in period 1 and 0 in period 3. 
B)80 in period 2 and 60 in period 3. 
C)60 in period 2 and 80 in period 3. 
D)0 in period 1 and 40 in period 3.

Quizplus · Accepted Answer

The Answer of A firm has the following gross requirements for Item F.If ordering costs are $60 per order and carrying costs are $0.50 per period.  If L4L ordering is used the planned order releases would be
A)40 in period 1 and 0 in period 3. 
B)80 in period 2 and 60 in period 3. 
C)60 in period 2 and 80 in period 3. 
D)0 in period 1 and 40 in period 3.

A Firm Has the Following Gross Requirements for Item F