Previous Chegg answers to this question have been wrong. Thanks! Problem 21-20 T

Question

Previous Chegg answers to this question have been wrong. Thanks!

Problem 21-20 The MRP gross requirements for Item A are shown here for the next 10 weeks. Lead time for A is three weeks and setup cost is $10. There is a carrying cost of $0.010 per unit per week. Beginning inventory is 92 units WEEK 4 25 10 60 200 87 ross requirements 35 40 17 75 85 20 Use the least total cost and the least unit cost lot-sizing method to determine what quantity the first order should be released and for which period Quantity Ordered Period (Click to select) (Click to select) Least total cost Least unit cost

Explanation / Answer

Beginning Inventory is equal to requirements for first 3 period. Weeks Quantity Ordered Carrying Cost Order Cost Total Cost Unit Cost a b c d=b+c e=d/a 4 25 $0.00 $10.00 $10.00 $0.40 4-5 100 $0.38 $10.00 $10.38 $0.10 4-6 185 $0.80 $10.00 $10.80 $0.06 4-7 205 $0.90 $10.00 $10.90 $0.05 4-8 265 $1.20 $10.00 $11.20 $0.04 4-9 465 $2.20 $10.00 $12.20 $0.03 4-10 552 $2.64 $10.00 $12.64 $0.02 9 200 $0.00 $10.00 $10.00 $0.05 9-10 287 $0.44 $10.00 $10.44 $0.04 Qty Ordered Qty Period Least Total Cost 552 4 - 10 Least Unit Cost 552 4 - 10 Period Net Requirement Order Ending Inventory Holding Cost Ordering Cost Total Cost 4 25 552 527 5.395 $10.00 $15.40 5 75 0 452 4.895 $0.00 $20.29 6 85 0 367 4.095 $0.00 $24.39 7 20 0 347 3.57 $0.00 $27.96 8 60 0 287 3.17 $0.00 $31.13 9 200 0 87 1.87 $0.00 $33.00 10 87 0 0 0.435 $0.00 $33.43

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