Develop a lot-for-lot solution and calculate total relevant costs for the gross

Question

Develop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the following table* Period 1 2 3 4 56 7 8 9 10 11 12 Gross requirements30 40 40 60 20 20 70 60 "Holding cost-$1.50/unit/week, setup cost= $150, lead time = 1 week; beginning inventory = 40. Develop a lot-for-lot solution (enter your responses as whole numbers) Period Gross requirements On-hand at beginning of period On-hand at end of period Order receipt Order release 1 2 3 4 5 6 78 9 10 12 30 40 40 60 20 20 70 60 40

Explanation / Answer

L4L MRP planning

Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross Requirements 30 40 40 60 20 20 70 60 On-hand at beginning of the period 40 10 10 0 100 60 20 0 90 70 60 On-hand at the end of the period 10 0 60 0 0 0 70 0 0 Order receipt 30 40 20 20 Order release 60 70 60

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