Product A is assembled from 1 unit of B and 0.5 units of C. B is made of 1 unit of D, 2 units of E and 1 unit of F. C is made of 0.5 units of D and 3 units of G.

The lead times, quantities on hand and master production schedule are as follows:

Item	Lead Time (Week)	Quantity on hand
A	2	0
B	1	20
C	2	30
D	2	0
E	1	0
F	2	0
G	2	0

Week	1	2	3	4	5	6	7	8	9
Gross requirements (for Product A)	0	0	40	60	0	30	0	40	20

1. Draw a BOM for product A.
2. Develop the material requirements plan for items B, C, D, E, F and G using lot-for-lot.
3. Assume a holding cost of $1.50 per unit per day and a setup cost of $150 per setup for Product A. Determine the size of the order using the lot-for-lot, EOQ, and POQ lot sizing techniques for Product A. Which technique produces the lowest total cost?

BONUS: Solve the Question (3c) with the Wagner-Whitin lot-sizing algorithm.

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