MRP Inventory Costs - 5 marks

The cost of ordering for the company is $30 per order and the cost of holding is $0.10 per unit per period.Based on the order quantities and inventory quantities in the MRP plan in question 1, answer the following:

1. What are the total inventory costs for each of the individual components [list each component and the related inventory cost]. -4marks

2. What is the total inventory cost for the entire MRP plan? -1 mark

MRP Report- 10 marks

Provide a summary report for the business owner based on the previous 2 questions above and the MRP plan generated in question 1.Ensure the report clearly outlines your thoughts and includes the following points:

1. Describe the order schedule as well as the associated costs.

2. How do you feel the company could be more efficient with itsinventory?What are some of the advantages of this MRP plan and what are some of the disadvantages of this MRP plan?

3. What would you be doing to decrease the inventory costs with this MRP plan?