Determine the MRP record for D using: a) POQ (P=2) b) EOQ Lot sizing method c) Part-period balancing lot-sizing is used d) Which method is the most cost effective?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Kindly answer b,  c and d for me. Clearly showing how the number are coming into existence. 

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The table below gives the gross requirements for the final products A and B during the last six
weeks. Each unit of A uses three units of C and each unit of B uses three units of C. Each unit
of C uses four units of D. Assume that A and B can be produced in zero time once enough C is
available. The lead-time for both Cand Dis one week. At the beginning of Week 1, 120 units of
C and 160 units of D are on hand. 50 units of C and 80 units of D are scheduled to be received
at the beginning of week 2. The average weekly demand for D is 100units. The cost per
production run is $200, and the cost of holding one unit in inventory for one week is $4.
WEEK
4
20
30
10
20
B
10
30
10
10
Determine the MRP record for D using:
a)
b)
c)
d)
POQ (P=2)
EOQ Lot sizing method
Part-period balancing lot-sizing is used
Which method is the most cost effective?
Transcribed Image Text:The table below gives the gross requirements for the final products A and B during the last six weeks. Each unit of A uses three units of C and each unit of B uses three units of C. Each unit of C uses four units of D. Assume that A and B can be produced in zero time once enough C is available. The lead-time for both Cand Dis one week. At the beginning of Week 1, 120 units of C and 160 units of D are on hand. 50 units of C and 80 units of D are scheduled to be received at the beginning of week 2. The average weekly demand for D is 100units. The cost per production run is $200, and the cost of holding one unit in inventory for one week is $4. WEEK 4 20 30 10 20 B 10 30 10 10 Determine the MRP record for D using: a) b) c) d) POQ (P=2) EOQ Lot sizing method Part-period balancing lot-sizing is used Which method is the most cost effective?
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