Develop a Material Requirements Plan (MRP) for the data in the following table that minimizes the total relevant costs. Count and cost inventory at the end of each period for calculating the inventory holding cost.

	Week	1	2	3	4	5	6	7	8	9	10	11	12
	Gross requirement	30		60	10		10		20		30		50
	Scheduled receipt	10	10
	On hand (beginning)
	On hand (end of period)
	Net requirement
	Planned order receipt
	Planned order release

Lead time = 2 weeks; ordering cost = $400/order; holding cost = $0.5/unit/week;

stockout cost = $10/unit; beginning inventory = 20 units.

1. What is the total cost associated with the optimal MRP?
2. What value of ordering cost will make the decision maker indifferent between the two lot sizing techniques (lot-for-lot and EOQ) for this problem?