Period 0 1 2 3 4 5 6 7 8

Gross requirements 0 50 0 10 40 20 30 5
Scheduled receipts
Projected on hand 20 20 20 0 0 0 0 0 0
Net requirement 30 0 10 40 20 30 5
Planned order receipts 30 10 40 20 30 5
Planned order release 30 10 40 20 30 5
Period 0 1 2 3 4 5 6 7 8
Gross requirements 0 50 0 10 40 20 30 5
Scheduled receipts
Projected on hand 20 20 20 33 33 23 46 26 59
Net requirement 30 0 17 4
Planned order receipts 63 63 63
Planned order release 63 63 63

Beginning inventory = 20 units

Setup cost = $100 per setup

Lead time = 1 week

Holding cost = $1 per unit per week

Lot size = 62 units

Average usage = total gross requirements/weeks = (0+50+0+10+40+20+30+5)/8= 19.375 =20 /week

D= average usage *52= 20*52 = 1040

2 DS 2∗1040∗100
Q=
√ H
=
√ 1∗52
= 63.24=63

Holding cost = (20+33+33+23+46+26+59+54) *1 =294

Ordering cost = 100 *3=300

Total = 300+294 =594