Question: A component of a product has a dependent demand pattern as given below in the first row (Gross Requirements) of MRP table. It takes 2

A component of a product has a dependent demand

A component of a product has a dependent demand pattern as given below in the first row (Gross Requirements) of MRP table. It takes 2 weeks to complete an order after it is placed and the lead time is independent of the order size. There are 40 units of this item in inventory at the beginning. A 230 units of this item is expected to be received at week 2 (i.e., Scheduled Receipts). Other data are: setup cost is $500, inventory holding cost is $5 per unit per week. Evaluate the total cost of following lot sizing methods: a) Lot for Lot (LFL) (20 pts) b) Economic Order Quantity (EOQ) (40 pts) c) Periodic Order Quantity (POQ) Interval (40 pts) Note: When calculating EOQ and POQ interval round up to the nearest inteeger. 3 5 1 30 2 150 4 120 6 180 7 100 8 220 230 Gross Requirments Scheduled Receipts On-Hand Inventory (40) Net Requirement Planned Order Receipt Planned Order Release

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