Question

Consider the following data from ZOE computer shop relevant to a material requirement planning $($MRP$)$ lot sizing problem.

Item cost per unit $$125\mathrm{.}00$

Setup cost $$150\mathrm{.}00$

Inventory carrying cost per year $18\mathrm{.}50\%$

WEEKLY REQUIREMENTS

$123456789101112$

$100105951202355065125120100200100$

As a planner, you have been asked to use the four lot sizing rules $($lot$-$for$-$lot, EOQ, LTC$,$ and LUC$)$ to propose an MRP schedule under each rule. Assume there is no beginning Inventory.

Which method would you recommend?

Rubric:

Method Correct calculation Some errors in calculation but good method Wrong method.

Wrong figures

Lot$-$for$-$lot $25100$

Economic Order Quantity $20100$

Least Total Cost $25100$

Least Unit Cost $25100$

Recommendation $520$

There shall be no extension of Time.