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The gross requirements for item A are specified for weeks 1 through 12 in the table that follows Item A, Level 0 00 01 02 03 04 0506 07 08 09 10 11 12 Gross requirements 0 60 0 50 0 700 400 60 0 50 Planned order release???????????? The lead time is 2 weeks: current on hand inventory, at the beginning of week 1 is 60 units: the order cost is $120 per order, and, the inventory cost s $3 per unit per period. The order quantity is a multiple of 50 units when it is necessary to place an order, what is the total cost for the 12 week period? Assume that inventory is requisitioned at the beginning of the period. Answer: 1110 The correct answer is: 1470

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On Hand 10 12 Total A, LT - 2, Lot - L4L Gross Requirements Scheduled Receipts Projected On Hand Net requirements Planned ord

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