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A firm that produces wood shutters and bookcases has received two orders for shutters: one for 100 shutters and one for 150 shutters. The 100-unit order is due at the start of week 4 of the current schedule, and the 150-unit order is due for delivery at the start of week 8. Each shutter consists of four slatted wood sections and two frames. The wood sections are made by the firm. Fabrication takes one week. The frames are ordered, and the lead time is two weeks. Assembly of the shutters requires one week. Determine the size and timing of planned-order releases necessary to meet delivery requirements using Lot-for Lot ordering policy
Determine the formula of the Economic Order Quantity. The formula for Economic Order Quantity (EOQ): EOQ = √((2x C O x D)/(C H ) Here D = Annual demand (units)
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