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

Question 142

Essay

Clancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $.75 per month and each setup costs $150. Calculate the order quantity by use of the part-period algorithm. Lead time is 2 months.
 Month 1234567 Requirement 100150200150100150250\begin{array}{|l|l|l|l|l|l|l|l|}\hline \text { Month } & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\\hline \text { Requirement } & 100 & 150 & 200 & 150 & 100 & 150 & 250\\\hline\end{array}

Correct Answer:

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EPP = blured image = blured image
= 200 units
In Period 1, an ...

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