Using the POQ method of ordering, calculate the total cost of carrying and ordering inventory for the 6 week period shown. Use a POQ = 3 weeks for your answer.
Week 1 2 3 4 5 6
Net requirements 60 40 10 50 20 30
Cost to place an order = $100.00
Cost to carry inventory = $1.00 per unit per week
Annual demand = 1,500 units
Cost per unit = $200.00
Opening inventory = 0 units
Question options:
1) $140
2) $280
3) $340
4) $400
5) none of the above