Files and More, Inc. (F&M), a manufacturer of office equipment, uses MRP to schedule its production. Because of the current recession and the need to cut costs, F&M has targeted inventory as a prime area for cost reduction. However, the company does not want to reduce its customer service level in the process. Demand and inventory data for a two-drawer file cabinet are given in the following table. Complete an MRP matrix for the file cabinet using:
(a) L4L,
(b) EOQ, ad
(c) POQ lot sizing.
Which lot-sizing rule do you recommend?

Ordering cost = $100 per order
Holding cost = $1 per cabinet per period
Lead time = 1 period
Beginning inventory =25

Transcribed Image Text:

Period 1 2345 Demand 20 40 3010 45