Question #2: For the Chair's BOM, represented in Question #1, the Master Production Schedule (MPS) is given as follows. The MPS is based on the company's estimation of Chair demand for weeks 1 through 7. MPS (includes GR) Week 1 2 3 4 5 6 7 Chair 0 0 0 100 225 0 45 Inventory Records Item Description SS Lot Size Rule LT SR OH Chair 40 EOQ = 100 50 in week 3 50 Independent demand Independent demand 2 wks 2 wks Chair 40 FOQ = 100 50 in week 3 50 a. Do the MRP Calculations for Chair based on lot size rule of Economic Order Quantity (EOQ) = 100 1 0 SS= 40 Lot Size Rule: EOQ = 100 LT= 2 weeks 2 3 4 0 0 50 5 225 6 0 7 45 Item: Chair Description: Independent Product Level: 0 Weeks GR SR NR OH 50 PORES PORe! 100 b. What is total inventory cost over 7 weeks based on the above material requirement plan, if ordering cost is $850 per order and holding cost is $10 per order? (hint: total inventory cost of 7 weeks is the sum of total order cost over 7 weeks and total holding cost over 7 weeks). c. Do the MRP Calculations for Chair based on lot size rule of Fixed Order Quantity (FOQ) = 100 SS= 40 Lot Size Rule: FOQ = 100 LT= 2 weeks 2 3 4 0 0 100 50 6 1 0 5 225 7 45 Item: Chair Description: Independent Product Level: 0 Weeks GR SR NR OH 50 PARA PORel 0 d. What is total inventory cost over 7 weeks based on the above material requirement plan, if ordering cost is $800 per order and holding cost is $10 per order? (hint: total inventory cost of 7 weeks is the sum of total order cost over 7 weeks and total holding cost over 7 weeks)