Chapter 14, Problem 11P

a)

Summary Introduction

To develop: A gross requirements plan for item C.

Introduction:

Gross requirements plan:

The gross requirements plan is the plan where the independent and dependent demands for a product or a component before the on-hand inventory and the scheduled receipts are netted with.

b)

Summary Introduction

To develop: A net requirements plan for item C.

Introduction:

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.