A partially completed inventory record for the motor subassembly is shown in Figure 11.39.
a. Complete the last three rows of the record by using the L4L rule.
b. Complete the last three rows of the record by using the POQ rule with P = 2.
c. Complete the last three rows of the record by using the POQ rule with P = 2.
d. If it costs the company $1 to hold a unit in inventory from one week to the next, and the cost to release an order is $50, which of the lot-sizing rules used above will provide the lowest inventory holding + order release cost?

Transcribed Image Text:

Item: GF-4 Description: Motor subassembly Gross requirements Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 20 1 60 23 Week Lot Size: Lead Time: 2 weeks 4 5 6 7 8 9 10 80 50 35 20 55 15 30 25 10