Given the Following Data

question 123

Essay

Given the following data:

The beginning inventory is 0 and there are no scheduled receipts. The order cost is $90 and the holding cost is $1 per part per period.
(a) What are the order costs, carrying costs, and totals cost over the 9 periods using the lot-for-lot size rule?
(b) What are the order costs, carrying costs, and totals cost over the 9 periods using the fixed order quantity rule with FOQ = 100?
(c) What are the order costs, carrying costs, and totals cost over the 9 periods using the period order quantity rule with POQ = 3?

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Definitions:

Economies of Scale

The financial advantages gained by companies due to their operational scale, where there's a general decline in the cost per unit of output with the growth in scale.

Total Demand

The entire quantity of a particular good or service that all consumers in a market want to purchase at various price levels during a specified time period.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as the quantity of the product sold changes.

Pure Monopolist

A single seller in a market that produces a unique product without close substitutes, controlling the market price.