A company periodically produces a part that is a basic component of an assembled product. Each time the part is run, a fixed cost of $127 is incurred. The cost to hold one unit for a week is estimated to be $175. Week 1 2 3 4 5 6 7 Demand (units) 46 20 92 20 ** 18 78 For the demand (net requirements) shown above, determine the quantity and timing of production runs using the part period method. units in week) units in week units in week Produce Produce Produce

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Chapter6: Proudction Costs
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A company periodically produces a part that is a basic component of an assembled product. Each time the part is run, a fixed cost of
$127 is incurred. The cost to hold one unit for a week is estimated to be $175.
Demand
Week (units)
1
46
2
SABA: AR
20
3 92
4
5
5
7
Produce
Produce
Produce
20
18
78
For the demand (net requirements) shown above, determine the quantity and timing of production runs using the part period method.
units in week
units in week
units in week
Transcribed Image Text:A company periodically produces a part that is a basic component of an assembled product. Each time the part is run, a fixed cost of $127 is incurred. The cost to hold one unit for a week is estimated to be $175. Demand Week (units) 1 46 2 SABA: AR 20 3 92 4 5 5 7 Produce Produce Produce 20 18 78 For the demand (net requirements) shown above, determine the quantity and timing of production runs using the part period method. units in week units in week units in week
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