PLEASE ANSWER Q.6 AND Q.7

4. Use your MRP schedule for the subassembly K to develop material requirements plan (MRP) for the component G using the lot-for-lot ordering policy. [4 marks] 74 102 40 102 Weeke 1e 2e 3e 4e 5e be se Lead time: 2 weeks On hand: 2302 Gross Requiremento 90 300 904 180 330 102 Scheduled Receipts 02 02 02 Projected On Hand 12304 1402 02 02 02 02 Net Requirements02 02 160 90 180 330 102 PO Receipts 102 02 160 902 [180 330 02 10 PO Releases 160 902 180 330 102 10 02 10 5. You are required to calculate the total inventory cost for the component G during the eight weeks. Note that, for each week, the inventory cost includes a fixed cost and a holding cost. We assume that the per order fixed cost is $200/order, and the unit holding cost is $2 per item per week. The fixed cost is incurred each time when the firm places an order. More precisely, if the firm places an order at the beginning of a week, then the firm incurs the fixed cost for this week; otherwise, the fixed cost for the week is zero. The holding cost is calculated according to the number of remaining items at the end of each week. For example, if 10 units of the component G are remaining at the end of a week, then the holding cost for this weekis 10 x$2 = $20. [4 marks] Answer: Total ending inventory for the eight periods = 230+140 = 3704 the carrying cost = 370 * $2 = $7404 Total ordering cost = 4 planned releases * $200 = $8004 Total cost = 740+800 = $1,5404 21 6. Use your MRP schedule for the subassembly K to develop material requirements plan (MRP) for the component G using the ordering policy of "fixed order quantity 400". [4 marks] Weeke 12 2 3e 4e 5e 6 7 8 82 Lead time: 2 weeks On hand: 230 Gross Requirement Scheduled Receipts Projected On Hande Net Requirements PO Receiptse PO Releases 7. Calculate the total inventory cost for the fixed order quantity in Question 6. The per order fixed cost is still $200/order, and the unit holding cost is still $2 per item per week. For this plan, which policy results in a lower inventory cost, the policy of fixed order quantity, or the policy of lot-for-lot? [4 marks]