Q- 1. The MP gross requirements for Item X are shown here for 4 weeks. Lead Time for A is one week and set up cost is $9. There is a carrying cost of $0.20. per unit per week. Begining inventory is 20 units in Week 1.
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Week
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1
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2
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3
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4
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Gross Requirements
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20
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10
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15
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45
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a) Use the EOQ method to determine when and for what quantity the first order should be released.
b) Use the Silver-Meal heuristic to determine when and for what quantity the first order should be released.