A firm that produces wood shutters and bookcases has received two orders for shutters: onefor 100 shutters and one for 150 shutters. The 100-unit order is due for delivery at the startof week 4 of the current schedule, and the 150-unit order is due for delivery at the start ofweek 8. Each shutter consists of two frames and four slatted wood sections. The wood sections are made by the firm, and fabrication takes one week. The frames are ordered, and leadtime is two weeks. Assembly of the shutters requires one week. There is a scheduled receiptof 70 wood sections in (i.e., at the beginning of) week 1. Determine the size and timingof planned-order releases necessary to meet delivery requirements under each of theseconditions:1. Lot-for-lot ordering (i.e., planned-order release equal to net requirements).2. Lot-size ordering with a lot size of 320 units for frames and 70 units for woodsections.
A firm that produces wood shutters and bookcases has received two orders for shutters: one
for 100 shutters and one for 150 shutters. The 100-unit order is due for delivery at the start
of week 4 of the current
week 8. Each shutter consists of two frames and four slatted wood sections. The wood sections are made by the firm, and fabrication takes one week. The frames are ordered, and lead
time is two weeks. Assembly of the shutters requires one week. There is a scheduled receipt
of 70 wood sections in (i.e., at the beginning of) week 1. Determine the size and timing
of planned-order releases necessary to meet delivery requirements under each of these
conditions:
1. Lot-for-lot ordering (i.e., planned-order release equal to net requirements).
2. Lot-size ordering with a lot size of 320 units for frames and 70 units for wood
sections.
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