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