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    Lot-for-lot, economic order quantity, and least total cost

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    Please help with the following accounting problem:

    An item has a setup cost of $100 and a weekly holding cost of $0.50 per unit. Given the following net requirements, what should the lot sizes be using lot-for-lot (L4L), economic order quantity (EOQ) and least total cost (LTC)? Also, what is the total cost associated with each lot-sizing technique?

    Period (in weeks) 1 2 3 4 5 6 7 8 Total
    Gross Requirement 10 30 10 50 20 40 50 30

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    https://brainmass.com/business/accounting/lot-for-lot-economic-order-quantity-least-total-cost-404487

    Solution Preview

    ** Please see the attached file for the complete solution response **

    SET Up cost $100
    Holding Cost $0.50

    Period 1 2 3 4 5 6 7 8
    Gross Requirement 10 30 10 50 20 40 50 30

    1) L4L
    Assuming lead time is 0 weeks (we get the item as soon as it is ordered)
    Assuming no safety stock (demand is stable and known)
    Total
    Period 1 2 3 4 5 6 7 8
    Order 10 30 10 50 20 40 50 30 240
    Holding Cost $- $- ...

    Solution Summary

    This solution provides a complete computation of the given accounting problem in Excel.

    $2.19

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