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Problem 3:

Period 1 2 3 4 5
Beginning inventory 0 0 0 0 0
Demand 350 200 0 150 500
Ordering (setup) cost/order $50.00 $50.00 $50.00 $50.00 $50.00
Carrying cost/unit/period $68.25 $68.25 $68.25 $68.25 $68.25
Order quantity (lotsizes) 350 200 0 150 500
Ending inventory 0 0 0 0 0
Total replenishment cost $50.00 $50.00 $0.00 $50.00 $50.00
Total carrying costs $0.00 $0.00 $0.00 $0.00 $0.00
Total replenishment plus carrying costs $50.00 $50.00 $0.00 $50.00 $50.00
6 7 8 9 10 11 12 Totals
0 0 0 0 0 0 0
600 450 350 200 0 150 200 3150
$50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00
$68.25 $68.25 $68.25 $68.25 $68.25 $68.25 $68.25
600 450 350 200 0 150 200 3150
0 0 0 0 0 0 0
$50.00 $50.00 $50.00 $50.00 $0.00 $50.00 $50.00 $500.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$50.00 $50.00 $50.00 $50.00 $0.00 $50.00 $50.00 $500.00

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