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Q. An item has a setup cost of $100 and a weekly holding cost of $0.50 per unit. Given the subsequent net requirements, illustrate what should the lot sizes be using lot-for-lot (L4L), economic order quantity (EQQ) and least total cost (LTC)? Also, illustrate what is the total cost associated with each lot-sizing technique?Period (in weeks) 1 2 3 4 5 6 7 8 TotalGross Requirement 10 30 10 50 20 40 50 30
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The DDM has a lower value than the current stock price and the FCF has a higher value than the current stock price. Illustrate what does this mean? Elucidate why would one be lower than current stock price and the other higher than current stock ..
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