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Question No3. The MRP gross requirements for item A are shown here for the next 10 weeks. Lead time for A is three weeks and

Question No3. The MRP gross requirements for item A are shown here for the next 10 weeks. Lead time for A is three weeks and setup cost is $10. There is a carrying cost of $.01 per unit per week. Beginning inventory is 90 units.

Use the least unit cost method to determine when and for what quantity the first order should be released?

(10 marks)

Weeks

1

2

3

4

5

6

7

8

9

10

Gross Requirement

30

50

10

20

70

80

20

60

200

50

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