Please find below filled up MRP table as required : Order qty”Lot-for-Lot, Lead
ID: 374183 • Letter: P
Question
Please find below filled up MRP table as required :
Order qty”Lot-for-Lot, Lead time : 1 week
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirement
30
30
40
60
20
20
80
60
On hand at beginning of period : 40
40
10
10
0
0
0
0
0
0
0
0
0
On hand at end of period
10
10
0
0
0
0
0
0
0
0
0
0
Order receipt
0
0
20
0
40
60
20
0
20
80
0
60
Order release
0
20
0
40
60
20
0
20
80
0
60
0
We presume that set up cost is incurred everytime an order is released
There are 7 numbers of Order Releases .
Therefore , total set up cost = $200 x 7 = $1400
Given, Holding cost = $1.50/unit / week
There are 10 + 10 = 20 units which are held up in inventory for week. Therefore total holding cost = $1.5 X 20 = $30
Hence, Total relevant cost = Gross Holding cost + Gross Set up cost = $1400 + $30 = $1430
Order qty”Lot-for-Lot, Lead time : 1 week
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirement
30
30
40
60
20
20
80
60
On hand at beginning of period : 40
40
10
10
0
0
0
0
0
0
0
0
0
On hand at end of period
10
10
0
0
0
0
0
0
0
0
0
0
Order receipt
0
0
20
0
40
60
20
0
20
80
0
60
Order release
0
20
0
40
60
20
0
20
80
0
60
0
Explanation / Answer
Develop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the following table* Period 1 23 4 5 6 7 8 9 10 1 12 eguirements 3030 40 60 20 20 80 60 Holding cost $1.50/unit/week, setup cost $200; lead time 1 week, beginning inventory 40 Develop a lot-for-lot solution (enter your responses as whole numbers). Perio Gross requirements 1 2 3 4 5 6 7 89 10 1 12 60 30 30 40 60 20 20 80 On-hand at beginning of period 140H On-hand at end of period Order receipt Order release