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) $340
C) $140
D) $400
E) none of the above
B
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Which of the following statements concerning MRP is TRUE?
A) Dependent-demand items tend to experience relatively constant demand rates. B) MRP systems use independent demands for each component item. C) Capacity requirements planning (CRP) uses open orders (scheduled receipts) and planned order releases to estimate capacity requirements for critical workstations. D) The most accurate way to forecast dependent demand is to examine past usage rates.
Most national union officers and staff representatives were at one time local union officers
Indicate whether the statement is true or false