The MPS for Product A calls for 100 units to be completed in Week 4 and 200 units in week 7 (the lead time is one week). Spare part demand for Item B is 10 units per week. The bill of materials for Product A is shown in Exhibit 14.34, and the inventory records are shown below.

Data Category Item B Item C

Lot Sizing Rule FOQ=500. LFL

Lead Time (wks). 2 3

Begin. OH Inventory 100 10

Schedule Receipts. none. 200 (wk 2)

A. Develop a material requirement plan for the next 7 weeks for items B and C.

B. Will any action notices be generated? If so, what are they and explain why they must be generated.

I have seen the answer above but am confused where the 500 in week 4 went and therefore, I cannot answer the followup question of "what would be impact of a scheduled receipt of 100 units for Item B in Week 2?