Question: Consider the following MRP lot-sizing problem for 6 weeks net requirements, when cost per item is $12 and order or set up cost is $35

Consider the following MRP lot-sizing problem for 6 weeks net requirements, when cost per item is $12 and order or set up cost is $35 and inventory carrying cost per week is $0.08. Answer the following questions:

Hint: you should calculate the net requirement, production quantity, ending inventory, holding cost, and set up cost, and total cost.

Weekly Net Requirements

		Weekly Net Requirements
1	2	3	4	5	6
45	50	70	65	80	32

a) Calculate the total cost by running lot-for-lot for MRP schedule for all 6 weeks. (10 points)

b) How much is the economic order quantity for 6 weeks? (5 points)

c) Calculate the total cost by running economic order quantity for an MRP schedule for all 6 weeks. (10 points)

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