hardware retail stores. Etoolie uses "Fixed Order Quantity" based EOQ as the lot sizing rule for

its material requirements planning.

BILL OF MATERIALS:

FG: Assembled by Etoolie $-$ needs one SA$1$ and two SA$2$

SA$1$: Assembled by Etoolie $-$ needs two P$3($and other parts outside the scope of this exercise$)$

SA$2$: Assembled by Etoolie $-$ needs three P$3($and other parts outside the scope of this exercise$)$

P$3$: Part purchased by Etoolie from an overseas supplier

DEMAND:

COSTS:

Etoolie uses an inventory carrying charge of $15\%$ per year for all its EOQ calculations.

ON$-$HAND INVENTORY BEFORE MONTH $1$

a$.(30$ points$)$ Generate the MRP output for items FG$,$ SA$1,$ SA$2,$ and P$3$ using the above

information. Your answer should show for each item when its production should start or

when its purchase order should be placed with the supplier, as well as the associated

quantities.

b$.(5$ points$)$ Ease of readability and verifiability of the spreadsheet developed for MRP

c$.(5$ points$)$ What factors may require Etoolie to change the above MRP plan?