1. Apply 5 lot-sizing rules (FOQ, POQ, L4L, part-period balancing and Wagner-Whitin) to the data given in the problem.
   1. Estimate the holding cost
   2. Estimate the ordering cost
   3. Use EOQ to determine FOQ and POQ

Include the MRP explosion (inventory records) and the total cost for each rule. The total cost is computed using the POH as inventory and the number of POReceipts as the number of orders/setups.

Use a table showing the lot-sizing rule versus the inventory carrying cost, the setup cost and the total inventory cost.

B D E F G H 1 Bill of Materials QTY LEVEL 2 ITEM NO 3 1 4 2 PART NO 1 P0110 2 POX 3| 4 P1X1 5 P1X2 ON HAND LEAD TIME INVENTORY LOT SIZES 0 2 240 613 1 1 500 1226 1 1 340 1839 2 1 500 2452 2 1 600 1839 5 2 6 4 7 3 8 9 10 MASTER SCHEDULE 11 WEEK 8 WEEKLY NET 12 REQUIRMENENTS 13 400 350 300 450 300 450 225 525 14 15 INVENTORY LEVELS OF COMPONENTS 16 ITEM INVENTORY 17 PO11 240 18 POX 500 19 POY 20 P1X1 500 21 P1X2 600 340 22 23 COSTS ASSOCIATED 24 ITEM COST PER UNIT (RS) SET UP COST (RS) 25 PO11 20 500 26 POX 65 400 27 POY 35 350 28 P1X1 5 430 29 P1X2 15 400 30 PRODUCT STRUCTURE DIAGRAM P0110 POX POY P1X1 P1X2 B D E F G H 1 Bill of Materials QTY LEVEL 2 ITEM NO 3 1 4 2 PART NO 1 P0110 2 POX 3| 4 P1X1 5 P1X2 ON HAND LEAD TIME INVENTORY LOT SIZES 0 2 240 613 1 1 500 1226 1 1 340 1839 2 1 500 2452 2 1 600 1839 5 2 6 4 7 3 8 9 10 MASTER SCHEDULE 11 WEEK 8 WEEKLY NET 12 REQUIRMENENTS 13 400 350 300 450 300 450 225 525 14 15 INVENTORY LEVELS OF COMPONENTS 16 ITEM INVENTORY 17 PO11 240 18 POX 500 19 POY 20 P1X1 500 21 P1X2 600 340 22 23 COSTS ASSOCIATED 24 ITEM COST PER UNIT (RS) SET UP COST (RS) 25 PO11 20 500 26 POX 65 400 27 POY 35 350 28 P1X1 5 430 29 P1X2 15 400 30 PRODUCT STRUCTURE DIAGRAM P0110 POX POY P1X1 P1X2