Question: 5 Lead Time = 2 Weeks Safety Stock = 10 Units Order Quantity = Lot for Lot (produce or order exactly what is needed. Period

5 Lead Time = 2 Weeks Safety Stock = 10 Units

5 Lead Time = 2 Weeks Safety Stock = 10 Units Order Quantity = Lot for Lot (produce or order exactly what is needed. Period 2 3 4 Gross Requirements 400 10 15 75 Scheduled Receipts 40 On Hand Inventory 25 25 25 15 10 10 Planned Order Relaeses 0 1075 The following transactions occur during period 1: 5 units of the scheduled receipt of 40 in period I are scrapped. 40 units of part N are disbursed in period 1. (The gross requirements of 40 are met.) Referring to the above information, assume that the 5 units of scrap were recorded properly and that 8 more parts, not previously shown by the records, were found. When the MRP record is updated for the beginning of period 2, the projected on-hand balance for period 3 would be: a. Greater than 15 but less than or equal to 20 units. O b. Greater than 20 units. OC. Greater than 10 but less than or equal to 15 units. O d. Less than or equal to 10 units

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