Use the following information about a product b&l; hard makes to complete the mp

Question

Use the following information about a product b&l; hard makes to complete the mps shown below. End Item A has a planned lead time of two weeks. There are currently 400 units on hand and no scheduled receipts. The holding cost is $1 and set-up cost is 5100. Compute the planned order releases using EOQ lot sizing and the MPS shown here for End Item A: Pan B has a planned lead tune of one week. There are currently 250 on hand and no scheduled receipt Using lot for lot production complete the MPS for. Only 410 units of Put B can be produced each week. Adjust the above MPS for to allow for this restriction. is ordered from an outside supplier. There are currently 850 on hand with a schedule receipt for 470 in week 2. There is a 3 week lead time. Using a periodic order quantity of 2 weeks and the MPS from c above create the MPS for.

Explanation / Answer

For End Item A, LT = 2 weeks, Lot sizing Tech. = EOQ

Inventory = 400 units

EOQ = 2DS /H = 2 x 485 x 100/1 = 311 units

For Item B(3 times of A Planned order release), LT = 1 week, Inventory = 250 units

Lot for lot Tech

Weeks 1 2 3 4 5 6 7 8 9 10 Demand 41 44 84 42 84 86 7 18 49 30 Sch Receipts Inventory (400 units) 359 315 231 189 105 19 12 305 256 226 Net Req 6 Planned Order Receipts 311 Planned Order Release 311

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