Exercise 2 Harmon Music Company manufactures a variety of wind musical instruments and the site production is located in Illinois. Since the company is small it is desired to minimize the burden monetary for storage. For this reason, production levels are set to meet demand almost in real time. To achieve this goal, the company has adopted an MRP system to determine the quantities to be produced. One of the instruments produced is an 85C trumpet model. The item is sold to the retailer at a price of $800. Based on the analysis of the fruition of musical instruments, the head of production receives demand forecasts for the next 4 months. It takes 7 weeks to produce the item. Trumpet Bell Assembly Valve Assembly (1) (1) LT=2w LT=4w Slide Assembly Valve (3) (1) LT=2w LT=4w Suppose that the distribution of demand for periods S to 17 is as follows: Week 9 10 11 12 13 14 15 16 17 D 77 42 38 21 26 112 14 76 38 Harmon periodically receives returns of defective products. Once the trumpets have been repaired can be shipped again. Based on current and anticipated returns, the company draws up a plan of returns from the warehouse: Week B 9 10 11 Sched receipts 12 6 9 In addition, the company estimates the quantity in stock in the warehouse to be 23 at the end of week 7. With reference to components, on the other hand, assume 186 valves are at the end of week 3, in stock, and 96 at week 5 as a result of returns for defects