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Transcribed Image Text:Question Three
The table below gives the gross requirements for the final products A and B during the last six
weeks. Each unit of A uses three units of C and each unit of B uses three units of C. Each unit
of C uses four units of D. Assume that A and B can be produced in zero time once enough C is
available. The lead-time for both Cand Dis one week. At the beginning of Week 1, 120 units of
C and 160 units of D are on hand. 50 units of C and 80 units of D are scheduled to be received
at the beginning of week 2. The average weekly demand for D is 100units. The cost per
production run is $200, and the cost of holding one unit in inventory for one week is $4.
WEEK
1
2
3
30
A
20
10
20
B
10
30
10
10
Determine the MRP record for D using:
a)
b) EOQ Lot sizing method
POQ (P=2)
c)
Part-period balancing lot-sizing is used
d)
Which method is the most cost effective?
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