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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 88 units.
WEEK | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
Gross requirements | 30 | 50 | 8 | 20 | 70 | 80 | 20 | 60 | 200 | 50 |
Use the least total cost or the least unit cost lot-sizing method to determine when and for what quantity the first order should be released.
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