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I just need help with question #4 please! Thank you! Windsor Manufacturing uses MRP to schedule its production. Below is the Bill of Material (BOM)
I just need help with question #4 please! Thank you!
Windsor Manufacturing uses MRP to schedule its production. Below is the Bill of Material (BOM) for Product A. The quantity needed of the part letter is in parentheses next to the part letter. Lead Times: Part B 2 weeks Part C 3 weeks Part D 2 weeks Part E 1 week Part E 2 weeks B(2) C(1) D(2) E(2) F(1) F(2) E(1) The MPS for product A calls for 50 units in Week 2, 60 units in Week 4, 75 units in Week 5, 50 units in Week 6 and 80 units in Week 7. Complete an MRP record for Part B for each of the following lot size methods: 1. Lot for Lot (L4L) 2. FOQ (Fixed Order Quantity) of 250 units 3. POQ (Periodic Order Quantity) of P=2 weeks) (Hint start P= 2 weeks the first week you need inventory to complete the gross requirements) The on-hand inventory for Part B is 50 units. Part B has a scheduled receipt of 50 units in week 2. 4. For Part B only determine the cost of each method based on ordering and holding costs. Ordering cost =$100 per order Holding cost = $1 per part per week Windsor Manufacturing uses MRP to schedule its production. Below is the Bill of Material (BOM) for Product A. The quantity needed of the part letter is in parentheses next to the part letter. Lead Times: Part B 2 weeks Part C 3 weeks Part D 2 weeks Part E 1 week Part E 2 weeks B(2) C(1) D(2) E(2) F(1) F(2) E(1) The MPS for product A calls for 50 units in Week 2, 60 units in Week 4, 75 units in Week 5, 50 units in Week 6 and 80 units in Week 7. Complete an MRP record for Part B for each of the following lot size methods: 1. Lot for Lot (L4L) 2. FOQ (Fixed Order Quantity) of 250 units 3. POQ (Periodic Order Quantity) of P=2 weeks) (Hint start P= 2 weeks the first week you need inventory to complete the gross requirements) The on-hand inventory for Part B is 50 units. Part B has a scheduled receipt of 50 units in week 2. 4. For Part B only determine the cost of each method based on ordering and holding costs. Ordering cost =$100 per order Holding cost = $1 per part per weekStep by Step Solution
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