Consider the following requirements for an office chair product. The company has a setup cost of $90, a holding cost per week of $5, beginning inventory of 300, and lead time of 2 weeks. What is the total inventory cost (setup plus holding) of using a lot-for-lot policy for this six-week inventory period?
A) $1770
B) $1500
C) $270
D) $1680
E) $3270

Question

Consider the following requirements for an office chair product.  The company has a setup cost of $90, a holding cost per week of $5, beginning inventory of 300, and lead time of 2 weeks. What is the total inventory cost (setup plus holding) of using a lot-for-lot policy for this six-week inventory period?
A) $1770 
B) $1500 
C) $270 
D) $1680 
E) $3270

Quizplus · Accepted Answer

The Answer of Consider the following requirements for an office chair product.  The company has a setup cost of $90, a holding cost per week of $5, beginning inventory of 300, and lead time of 2 weeks. What is the total inventory cost (setup plus holding) of using a lot-for-lot policy for this six-week inventory period?
A) $1770 
B) $1500 
C) $270 
D) $1680 
E) $3270

Consider the Following Requirements for an Office Chair Product