Question: Using the inventory records completed, calculate the average inventory level of AB501, AB511, AB521. Assume that the remaining inventory after the gross requirements are satisfied,

Using the inventory records completed, calculate the average inventory level of AB501, AB511, AB521. Assume that the remaining inventory after the gross requirements are satisfied, is used in another production cycle.

Product: AB501 Lead Usage Factor: 2
Lot Size Rule: L4L Beginning Invertory: 3,400
Time(weeks): 2
Week

1

2

3

4

5

6

7

8

9

10

Gross Requirements

680 1,360 680 1,360 680 1,360 680 1,360 0 0

Scheduled Receipts

0 0 0 680 680 1,360 680 1,360 0 0

Projected Available 3,400

2,720 1,360 680 0 0 0 0 0 0 0

Planned Orders

0 680 680 1,360 680 1,360 0 0 0 0

Product: AB511 Lead Usage Factor: 1
Lot Size Rule: FOQ=1,020 Beginning Invertory: 2,210
Time(weeks): 3
Week

1

2

3

4

5

6

7

8

9

10

Gross Requirements 340 680 340 680 340 680 340 680 0 0
Scheduled Receipts 0 0 0 0 1,020 0 1,020 0 0 0
Projected Available 2,210 1,870 1,190 850 170 850 170 850 170 0 0
Planned Orders 0 0 1,020 0 1,020 0 0 0 0 0

Product: AB521 Lead Usage Factor: 2
Lot Size Rule: POQ=2 Beginning Invertory: 2,210
Time(weeks): 2
Week

1

2

3

4

5

6

7

8

9

10

Gross Requirements 680 1,360 680 1,360 680 1,360 680 1,360 0 0
Scheduled Receipts 0 0 1,870 0 2,040 0 2,040 0 0 0
Projected Available 2,210 1,530 170 1,360 0 1,360 0 1,360 0 0 0
Planned Orders 1,870 0 2,040 0 2,040 0 0 0 0 0

Average Inventory for AB501 =

Average Inventory for AB511 =

Average Inventory for AB521 =

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!