Question
3. Material Requirement Planning LO2, LO3 (30 Points) Operations Manager of PT Radio Gaga is doing the calculation of production costs a telecommunications radio by
3. Material Requirement Planning LO2, LO3 (30 Points) Operations Manager of PT Radio Gaga is doing the calculation of production costs a telecommunications radio by considering the following needs: i. Week 1: 20 units ii. Week 2: 36 units iii. Week 3: 42units iv. Week 4: 45 units v. Week 5: 20 units vi. Week 6: 22 units It is known that there are 20 units of inventory from the previous week. Assuming 52 week per year, order lead time for 1 week, setup cost $40 and holding cost of $0.75 per week, you are asked to help the Operations Manager of PT Radio Gaga to calculate the estimated production costs as follows: a. Calculate EoQ (3 points) b. Make an MRP Lot Sizing Table for 6 weeks with the EoQ method (7 points) c. Calculate Total Production Cost using the EoQ method (5 points) d. Make an MRP Lot Sizing Table for 6 weeks using the Lot method for Lot (7 points) e. Calculate the Total Production cost using the Lot for Lot method (5 points) f. Which method will PT Radio Gaga's Operations Manager take? Explain your answer (3 points)
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