I am having a hard time understanding the differences between lot-for-lot orderi
ID: 377746 • Letter: I
Question
I am having a hard time understanding the differences between lot-for-lot ordering, and fixed order period ordering. My understanding is that L-F-T means ordering something when you need it. However, I don't understand how the 3 week fixed order period works with a 2 week lead time for instance.
Please explain the steps/logic you took behind completing a planned order release for each
End item "A" has a planned lead-time of two weeks. There are currently 120 units on hand and no scheduled receipts. 5. Week Demand 1 234 56 78 910 41 44 84 4284 86 7 18 49 30 a) b) Compute the planned order releases for"A” using the "lot-for-lot" lot-sizing rule Compute the planned order releases using a 3-week, "fixed-order-period" lot-sizing rule.Explanation / Answer
Lot for lot , LFT means order are taken in any quanitity, so if demand is 10 , 10 items can be ordered. And if the demand is 20 , then 20 can be ordered.
The lead time remains as the time prior to wcich order needs to be placed to meet the demand.
Lot sizing is a fixed lot that is ordered,if the order is of 30, then the demand might be 10 , but the order needs to be 30. And if the demand is 40, the order needs to be 2*30 so 60.
fixed order period is when every 3 weeks order is received, rather than every week.
A.
B. Here the net requirements are clubbed in weeks of 3 and the orders are processes all at the same time, every three week.
Week 1 2 3 4 5 6 7 8 9 10 Demand 41 44 84 42 84 86 7 18 49 30 Net req -79 -35 49 42 84 86 7 18 49 30 Beginning inv 120 79 35 0 0 0 0 0 0 0 Order 49 42 84 86 7 18 49 30 0 0 Receive 0 0 49 42 84 86 7 18 49 30 Release 41 44 84 42 84 86 7 18 49 30 Closing Inv 79 35 0 0 0 0 0 0 0 0Related Questions
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