Question: The distribution mgr. is considering using error addback for his DRP system. To evaluate its use, he complied data for 3 periods on a sample

The distribution mgr. is considering using error addback for his DRP system.

To evaluate its use, he complied data for 3 periods on a sample product, the initial DRP record is given here:

The distribution mgr. is considering using error

Part A

Develop the DRP record for period 2 if demand in Period 1 was 24.

Part B

Completed the same records using the error addback method.

Period 1 2 3 4 5 forecast Requirements 30 30 30 30 30 In Transit 60 Projected Available Balance 10 40 10 40 10 40 Planned Shipments 60 60 Q = 60, lead time = 1, Safety stock = 10

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