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
Planned order receipts
Ending inventory
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
A) $280
B) $400
C) $340
D) $140
E) none of the above
C
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