Question

Given an order cost of $100, a, per period holding cost of $.50, and the following requirements schedule: Pd 1 2 3 4 5 6 Dmd 120 80 80 70 100 60 What is the economic part-period (EPP) for ordering this item?

A) 100
B) 2
C) 50
D) 150
E) 200

Answer 1

The student's question pertains to calculating the economic part-period (EPP) for inventory ordering. However, the information provided is not sufficient to complete this calculation because crucial details are missing. Additional data on inventory costs and demand in further periods would be necessary to calculate the EPP accurately.

Step-by-step explanation:

The student has asked to calculate the economic part-period (EPP) for ordering an item given a set of demand requirements over several periods. The concept of part-periods is used in inventory management to balance ordering costs against holding costs and to find the most cost-effective order quantity and timing. To find the EPP, we would typically determine the period or combination of periods up to which placing a single order would minimize the sum of the holding cost and the ordering cost. In this case, we do not have sufficient information to perform a standard EPP calculation. The provided reference information about inflation rates, price per share, and utility figures seems to be irrelevant to the EPP calculation. If additional information such as unit costs and demand requirements for further periods were provided, we would be able to calculate the EPP by considering the cost trade-offs.