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Projected on-hand inventory balance at the end of week t = Inventory on hand at the end of week t-1 + Scheduled or planned receipts
Projected on-hand inventory balance at the end of week t = Inventory on hand at the end of week t-1 + Scheduled or planned receipts in week t - Gross requirements in week t Jason wants to develop the inventory record for Item B which is one of the components necessary for producing Product A. The Bill of Material (BOM) shows that three units of the component are needed to produce one unit of the product. The order quantity is 50 units, which is based on the fixed order quantity (FOQ) lot-sizing rule. The lead time is 1 week. The current on-hand inventory. also called the beginning inventory, is 10 units. The company has the scheduled receipt of 30 units in Week 1. The MPS start quantities of the product for the next 4 weeks are 5, 10, 15, and 5. Answer the following questions. Round to the nearest whole number. Table 1. MPS Start Quantity for Product A Product: A MPS Start 1 2 3 4 5 10 15 5 Table 2. Inventory Record for Item B Lot size (FOQ): 50 LT: 1 Beginning inventory: 10 1 3 4 Gross requirements 30 45 15 Scheduled receipts 30 Projected on-hand inventory Planned receipts Planned order releases Question 5 D What is the projected on-hand inventory for Item "B" in week 2? O 1 S 45 45 Question 6 What is the gross requirement for Item "B" in week 1? 2 15 120 4 p
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