3 Suppose end items had to be ordered in multiples of 100 units, components in multiples of 500 units, and raw materials in multiples of 1,000 units. How would this change your schedule?

Use Microsoft Excel to solve the Nichols Company case. (Note that if you start from scratch, it will take several hours to answer Question 1, about the same for Question 2, and perhaps double that for Question 3. A spreadsheet is on the DVD included with this book to help with this problem.) Simplifying assumption: To get the program started, some time is needed at the beginning because MRP backloads the system. For simplicity, assume that the forecasts (and therefore demands) are zero for Periods 1 through 3. Also assume that the starting inventory specified in Exhibit 16.27 is available from Week 1. For the master production schedule, use only End Items A, B, and C. To modify production quantities, adjust only Products A, B, and C. Do not adjust the quantities of D, E, F, G, H, and I. These should be linked so that changes in A, B, and C automatically adjust them.

CAPACITY COST Work Center 1 Work Center 2 6000 hours available $20 per hour 4.500 hours available $25 per hour Work Center 3 2.400 hours available $35 per hour Work Center 4 1,200 hours available $65 per hour Inventory carrying cost End Items A, B, and C $2.00 per unit per week. Components D, E, F, G, and H $1.50 per unit per week Raw Material I Backorder cost End Items A, B, and C $1.00 per unit per week $20 per unit per week Components D, E, F, G., and H $14 per unit per week Raw Material I $8 per unit per week