The ordering plan and cost for lot for lot. Introduction: Lot for Lot: The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period. Net requirements plan: The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

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Answer 1

Question

Chapter 14, Problem 26P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

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Students have asked these similar questions

Energyzer , a regional electronics retailer , estimates that sells 13 , 000 4-packs of batteries per year (or 250 per week). Each 4-pack of batteries costs the retailer $2.00; with a carrying cost rate of 32%; and ordering costs of $40.00 per order. a. Calculate the optimum order period—in terms of weeks , b. Calculate the economic order quantity PLEASE SHOW WORK

Economic order quantity (Q*) is 2,000 units. Annual demand (D) is 12,000 units. Find number of orders per year (N*) and time between orders (T*) in weeks. N*=0.167 times per year, T*= 6 weeks N*=6 times per year, T*= 60.83 weeks N*=6 times per year, T*= 0.167 weeks N*=8.67 times per year, T*= 6 weeks N*=6 times per year, T*= 8.67 weeks

Using the gross requirements schedule below*, prepare an alternative ordering system that orders every 3 weeks for 3 weeks ahead (a periodic order quantity). What is the cost of this ordering system? Period 1 2 3 4 5 6 7 Gross requirements 25 20 40 0 10 50 30 The cost of this ordering system is $ Prepare a net requirements plan (enter your responses as whole numbers). *Holding cost = $1/unit/week; setup cost = $200; lead time = 1 week; beginning inventory = 25 units. Period Gross requirements On-hand at beginning of period On-hand at end of period Net requirements Order receipt Order release (enter your response as a whole number). 25 1 25 2 20 3 40 4 5 0 10 8 0 6 50 9 10 30 65 7 30 8 9 10 0 30 65

Answer 2

Question

Chapter 14, Problem 26P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 26P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 26P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 26P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Answer 6

Chapter 14, Problem 26P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 7

Chapter 14, Problem 26P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 8

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 9

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 10

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 11

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 12

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Answer 13

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Answer 14

Expert Solution & Answer

Answer 15

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Answer 16

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Answer 17

Ch. 14 - Prob. 1ED Ch. 14 - What is the difference between a gross...Ch. 14 - Prob. 2DQ Ch. 14 - What are the similarities between MRP and DRP?Ch. 14 - How does MRP II differ from MRP?Ch. 14 - Which is the best lot-sizing policy for...Ch. 14 - What impact does ignoring carrying cost in the...Ch. 14 - MRP is more than an inventory system; what...Ch. 14 - What are the options for the production planner...Ch. 14 - Master schedules are expressed in three different...

Solution Summary: The author explains that the lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

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