This document discusses inventory planning using an economic order quantity (EOQ) model with 52 weeks per year, an EOQ of 73 units, and carrying ending inventory forward to meet gross weekly requirements, resulting in fewer, larger orders being placed. A planned order receipt and net requirement sheet is used to calculate ending inventory balances.
This document discusses inventory planning using an economic order quantity (EOQ) model with 52 weeks per year, an EOQ of 73 units, and carrying ending inventory forward to meet gross weekly requirements, resulting in fewer, larger orders being placed. A planned order receipt and net requirement sheet is used to calculate ending inventory balances.
This document discusses inventory planning using an economic order quantity (EOQ) model with 52 weeks per year, an EOQ of 73 units, and carrying ending inventory forward to meet gross weekly requirements, resulting in fewer, larger orders being placed. A planned order receipt and net requirement sheet is used to calculate ending inventory balances.
• EOQ== = 73 • Ending inventory is carried to gross requirements each week • Number of orders go down because the Q is bigger • POQ sheet: planned order receipt – Net requirement = ending inventory