A firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period. If the periodic order quantity lot sizing rule is used, then planned order releases in Period 2 would be
A) 40 in period 1.
B) 60 in period 2.
C) 120 in period 3.
D) 140 in Period 2.

Question

A firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period.  If the periodic order quantity lot sizing rule is used, then planned order releases in Period 2 would be
A) 40 in period 1. 
B) 60 in period 2. 
C) 120 in period 3. 
D) 140 in Period 2.

Quizplus · Accepted Answer

The Answer of A firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period.  If the periodic order quantity lot sizing rule is used, then planned order releases in Period 2 would be
A) 40 in period 1. 
B) 60 in period 2. 
C) 120 in period 3. 
D) 140 in Period 2.

A Firm Has the Following Gross Requirements for Item F