Question: Jason wants to develop the inventory record for Item B which is one of the components necessary for producing Product A. The Bill of Material

Jason wants to develop the inventory record for Item B which is one of the components necessary for producing Product A. The Bill of Material (BOM) shows that three units of the component are needed to produce one unit of the product. The order quantity is 50 units, which is based on the fixed order quantity (FOQ) lot-sizing rule. The lead time is 1 week. The current on-hand inventory, also called the beginning inventory, is 10 units. The company has the scheduled receipt of 30 units in Week 1. The table below shows the MPS start quantities of the product for the next 4 weeks. Answer the following questions. Round to the nearest whole number.

What is the planned order release for Item B in week 1?

10

13

50

What is the projected on-hand inventory for Item B in week 2?

1

33

45

What is the planned receipt for Item B in week 1?

0

70

120

What is the projected on-hand inventory for Item B in week 3?

0

6

120

What is the gross requirement for Item B in week 1?

7

15

21

What is the projected on-hand inventory for Item B in week 1?

19

25

90

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