Note: Use the following format for all your MRP matrices: Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipts Planned order releases Assume the following: Order cost Inventory carrying Inventory on hand Lead time R60/order R1/unit/period 30 units 1 period 0 1 30 Question 1 Consider the gross requirements for product X as follows (units): 0 3 4 20 10 Gross requirements Illustrate the impact of lot sizing on the total cost (inventory carrying cost and order cost) for the following two scenarios: No lot sizing Economic order quantity 1 2 50 PERIOD 2 3 4 5 40
Note: Use the following format for all your MRP matrices: Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipts Planned order releases Assume the following: Order cost Inventory carrying Inventory on hand Lead time R60/order R1/unit/period 30 units 1 period 0 1 30 Question 1 Consider the gross requirements for product X as follows (units): 0 3 4 20 10 Gross requirements Illustrate the impact of lot sizing on the total cost (inventory carrying cost and order cost) for the following two scenarios: No lot sizing Economic order quantity 1 2 50 PERIOD 2 3 4 5 40
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
For Question 1 you are required to mannualy (without the use of excel) develop two MRP matrices: one with no lot sizing (you order what is required) and a lot seize equal to the EOQ.
To determine the EOQ note that the inventory carrying cost is given as R1/unit/period. This means that you have to calculate the average demand per period and use this demand value in your EOQ calculation. This is then the order quantity to be used for the second MRP matrix.

Transcribed Image Text:Note:
Use the following format for all your MRP matrices:
Gross requirements
Scheduled receipts
Projected on hand
Net requirements
Planned order receipts
Planned order releases
Gross requirements
No lot sizing
Economic order quantity
Question 1
Consider the gross requirements for product X as follows (units):
0
4
10
Assume the following:
Order cost
1
30
Inventory carrying
Inventory on hand
Lead time
0
R60/order
R1/unit/period
30 units
1 period
1
2
50
PERIOD
2
3
3
20
Illustrate the impact of lot sizing on the total cost (inventory carrying cost and order cost) for
the following two scenarios:
5
40
4
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 7 images

Recommended textbooks for you

Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,

Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education

Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,

Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education


Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning

Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.