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 EOQ lot sizing is used to set the minimum order quantity,then the planned order releases would be
A)40 in period 1 and 0 in period 3.
B)0 in period 2 and 80 in period 3.
C)120 in period 2 and 120 in period 3.
D)100 in period 2 and 100 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 EOQ lot sizing is used to set the minimum order quantity,then the planned order releases would be
A)40 in period 1 and 0 in period 3. 
B)0 in period 2 and 80 in period 3. 
C)120 in period 2 and 120 in period 3. 
D)100 in period 2 and 100 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 EOQ lot sizing is used to set the minimum order quantity,then the planned order releases would be
A)40 in period 1 and 0 in period 3. 
B)0 in period 2 and 80 in period 3. 
C)120 in period 2 and 120 in period 3. 
D)100 in period 2 and 100 in period 3.

A Firm Has the Following Gross Requirements for Item F