14.

17
Develop a lot-for-lot solution and calculate total relevant costs for the data in the preceding table.

With the beginning inventory = 40, we can develop a lot-for-lot solution as following:
Period 0 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirement 30 40 30 70 20 10 80 50
Inventory 40 10 10 0 0 0 0 0 0 0 0 0 0
Net requirement 0 30 30 70 20 10 80 50
Order release 30 30 70 20 10 80 50

Holding cost
25 25 0 0 0 0 0 0 0 0 0 0
($2.5/unit/week)
Setup cost ($150) 150 150 150 150 150 150 150
Period cost 25 175 0 150 150 150 0 150 150 0 150 0
So, the total relevant cost will be $1100.