[Chapter 14) Net Material Requirements Plan A manufacturing company has a master production plan for an item as shown in the table below. The following information is also given: . Inventory holding cost is $10 per unit per week. Setup (Ordering) cost is $150 per setup (order). Beginning on-hand inventory is 80 units. Lead time is 2 weeks. Lot-for-lot is used as the lot-sizing technique. . N 3 4 5 6 6 7 89 10 200 100 150 200 MRP Lot Sizing: Lot-for-Lot Technique Week 1 Gross requirements Scheduled receipts Projected on-hand inventory 80 Net requirements Planned order receipts