Question: Material Requirement Planning (15 marks) Month 1 2 3 4 5 6 7 Requirement 50 100 120 130 100 80 120 Holding cost = $1/unit/month;

Material Requirement Planning (15 marks)

Month

1

2

3

4

5

6

7

Requirement

50

100

120

130

100

80

120

Holding cost = $1/unit/month; setup cost = $150; lead time = 1 month; no beginning inventory

Based on the data given in the table above, use each lot-sizing technique below to calculate its total relevant costs for the 7 months.

  1. Lot-for-lot (2 marks)
  2. EOQ (5 marks)
  3. Part Period Balancing (8 marks)

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