A Orm uses components A, B, and C to assemble a Onal product iFi; see the bill of materials in Figure 2.

1. [5 marks] You are required to Oll in Table 1 to prepare a master schedule for product iF.iEach time when the Orm assembles the product, the Orm always uses the Oxed lot size rule to make 50 units of iF.iThe Ormis assembly time for product iFiis 1 week. The beginning inventory for iFiis 72 units; the forecast and promised customer orders for this end item are provided in Table 1.

2. [8 marks] Use your master schedule in Table 1 to develop material requirements plans (MRPs) for components A and B. Note that you are required to Onish the MRP tableo i.e., Table 2 on page 7o in which you can Ond the present on-hand quantity (i.e., the beginning inventory), lead time, lot-size policy, and scheduled receipts for each of components A and B.

3. [3 marks] Calculate the total inventory cost for the end item F during the eight weeks. Note that, for each week, the inventory cost includes a Oxed ordering cost and a holding cost. We assume that the per order Oxed ordering cost is $200/order, and the unit holding cost is $1 per item per week. The Oxed cost is incurred each time when the Orm places an order. The holding cost is calculated according to the number of remaining items at the end of each week.

F A(2) B(2) B(3) Figure 2: Bill of materials used for Question AQ5. Week 0 1 2 3 4 5 6 7 8 30 30 30 28 30 32 25 20 25 16 40 10 40 5 72 Forecast Customer orders (committed) (Ending Inventory) Projected on-hand inventory Net inventory before MPS MPS Receipt MPS Start Available-to-promise inventory (uncommitted) Table 1: MPS table for end item "F" in Question AQ5. 1 2 3 4 5 6 7 8 Week MPS Component A Lot-sizing policy: fixed period of two; Lead time: 2 weeks; Present on hand: 68; Scheduled receipts: 100 units in Week 1. Gross Requirement Scheduled Receipts (Ending Inventory) Projected On Hand Net Requirements PO Receipts PO Releases Component B Lot-sizing policy: lot-for-lot; Lead time: 2 weeks; Present on hand: 310; Scheduled receipts: 200 units in Week 2. Gross Requirement Scheduled Receipts (Ending Inventory) Projected On Hand Net Requirements PO Receipts PO Releases Table 2: MRP table for Question AQ5