The master production schedule (MPS) for two products, A and B, is shown below. To manufacture item
A, two units of component C are required. To manufacture item B, four units of component C are
required. The inventory balance for C is 10 units at the start of week 1. Using this information, determine
the gross requirements for component C to start week 1.
MPS
Week 1
Product A
15
Product B
2
A.
15 units
B.
28 units
C.
38 units
D.
48 units
Using a lot-for-lot ordering strategy for the following item, what is the net requirements amount in week
3? (Note: Use a lead time of one week and the gross requirements and scheduled receipts depicted
below, and assume you begin with 100 units in inventory.)
Week
1
2
3
4
Gross requirements
0
100
80
15
Scheduled receipts
75
0
0
0
Projected ending inventory (100)
Net requirements
Planned order receipts
Planned order releases
A.
0 units
B.
5 units
C.
15 units
D.
80 units
