Question: 5. Consider the product structure diagram given in Figure below. Assume that the MPS for the end item for weeks 10 through 14 is: End

5. Consider the product structure diagram given

5. Consider the product structure diagram given in Figure below. Assume that the MPS for the end item for weeks 10 through 14 is: End item End item level A(2) 1 week B(1) 2 weeks Parent level (level 1) C11) 2 weeks D(2) C(2) 2 weeks E(3) 2 weeks Child level (level 2) 1 week Week Net requirements 10 100 11 100 12 40 13 40 14 100 Assume that lot-for-lot scheduling is used throughout. Also assume that there is no entering inventory in period 10 and no scheduled receipts. The setup cost for the construction of the base assembly is $100, and the holding cost is $0.30 per assembly per week. a. Compare the holding and setup costs obtained using the lot-for-lot policy and Silver-Meal heuristic for Component B. Which policy is better? b. Determine the planned order release for component C

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