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Clancy's Motors Has the Following Demand to Meet for Custom

Question 119

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Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $2 per month and each setup costs $80. Lead time is 0 months. Calculate the planned order releases using: (a) the EOQ technique, and (b) the POQ technique. What are the costs of each plan, including the holding cost of any inventory left over after month 7?
Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $2 per month and each setup costs $80. Lead time is 0 months. Calculate the planned order releases using: (a) the EOQ technique, and (b) the POQ technique. What are the costs of each plan, including the holding cost of any inventory left over after month 7?

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(a) The monthly holding cost = $2/month
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