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.

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