Explanation:

$1.$ Total Cost using Lot$-$for$-$Lot Technique

The Lot$-$for$-$Lot $($L$4$L$)$ technique involves ordering exactly what is needed for production based on demand forecasts without holding any excess inventory. This method minimizes carrying costs but might increase ordering costs if the demand is spread out over time.

To calculate the total cost using L$4$L$,$ we would need the following information:

Demand for P$0110$ units over the planning horizon.

Cost per order $($ordering costs$).$

Cost per unit $($purchase or production cost$).$

Inventory carrying cost per unit per time period $($although minimal in L$4$L$).$

$2.$ Effect on Cost using Economic Order Quantity $($EOQ$)$ Technique

The Economic Order Quantity $($EOQ$)$ technique is designed to minimize the total cost of inventory by finding the ideal order size that reduces both ordering and carrying costs.

To evaluate the effect of EOQ on the cost of P$0110$ units, we need:

Annual demand for the units.

Cost per order $($ordering costs$).$

Annual holding cost per unit.

EOQ is calculated using the formula:

where:

$=$ Annual demand

$=$ Cost per order

$=$ Annual holding cost per unit

The total cost under EOQ can then be compared to the L$4$L cost to observe the impact.

Step $2$

$3.$ Recommended Lot Sizing Method

Choosing between L$4$L and EOQ depends on various factors including the cost structure $($ordering vs$.$ carrying costs$),$ demand variability, production capacity, and lead times. If the ordering costs are high and demand is relatively stable, EOQ might be preferable. Conversely, if demand is unpredictable and the product has a short life cycle or carrying costs are high, L$4$L could be more suitable.

Explanation:

$4.$ Preparing MRP Matrices

Material Requirements Planning $($MRP$)$ matrices organize the demand, supply, and scheduling information for each component required to manufacture a product. To prepare MRP matrices for P$0110$ units and any dependent units like POX, we'd need:

The Bill of Materials $($BOM$)$ for P$0110$ and POX units, indicating all components and sub$-$assemblies.

The master production schedule $($MPS$)$ for the final products.

Inventory status of all items.

Lead times for each component.

The MRP matrix typically includes:

Gross requirements $($demand$).$

Scheduled receipts.

On$-$hand inventory.

Net requirements.

Planned order releases.

Without specific data on demand, inventory, and cost, I can guide you through the concepts and calculations involved.

Answer

If you provide the necessary details, I can further assist in calculating costs and suggesting the most appropriate lot$-$sizing technique for Sunita Menon, as well as helping draft the MRP matrices for P$0110$ and POX units. Can you all the calculations for these $4$ questions?