Question: component lot size rule time (weeks) Lead usage factor Beginning inventory AB501 L4L 2 2 1100 AB511 POQ = 350 3 1 650 AB521 POQ
| component | lot size rule | time (weeks) | Lead usage factor | Beginning inventory |
| AB501 | L4L | 2 | 2 | 1100 |
| AB511 | POQ = 350 | 3 | 1 | 650 |
| AB521 | POQ = 3 | 2 | 3 | 1650 |
Use the planned orders generated in problem 11. Calculate the average inventory records if the company decides to switch the lot size rule for AB511 and AB521 to lot-for-lot. Compare the number of replenishment orders using the new lot size rules.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
