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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
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 $0.010 per unit per week. Beginning inventory is 100 units.
| WEEK | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
| Gross requirements | 40 | 40 | 20 | 30 | 60 | 80 | 20 | 60 | 205 | 100 |
Use the least total cost and the least unit cost lot-sizing methods to determine the quantity to order with the first order released with each method and which periods' requirements will be covered by that order.
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