There is a production of product A as shown in the MPS below:

Period	1	2	3	4	5	6	7	8
Requirement	0	40	105	20	0	80	30	45

Item					A	B	C	D	E	F	G
Lead Time (Week)					-	2	1	2	1	3	1
On hand inventory at the beg. of week 1 (units)					-	100	-	-	100	-	-
Inventory holding cost ($/unit/week)					-	3	2	1.5	2.5	3	2
Setup (or ordering) cost ($/setup)					-	-	100	-	50	-	75

The question is determine:

1. Order release for Item G (Part Period Balancing Method)

2. Order release for Item C (Silver-Meal method); 80 units at the beginning of period 5 for scheduled receipt.

3. If the production capacity for Item C is 180 units in any period. Is the net requirements schedule obtained for this component in point 2 feasible if the lot sizing policy is considered to be Lot-for-Lot (LFL)? If not,

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(i) suggest a modification in the planned order releases computed in 3rd question that would result in a feasible schedule,

(ii) determine the cost of the schedule obtained in point i, and,

(iii) compare the cost determined in point (ii) with that of the first point initial production schedule obtained in 3rd question.

 

LEVEL O LEVEL 1 LEVEL 2 B (1) C (1) E (3) A C (2) F (2) D (2) D (3) F (1) G(1)