1. Bob Stahl, the distribution manager at Forbes Industries, is considering using error addback for his DRP system. To evaluate its use, he compiled data for three periods on a sample product, the Scarlet Tiara. The initial DRP record is given here:

Period 1 2 3 4 5 Forecast requirements 30 30 30 30 30 In transit 60 Projected available balance 10 40 10 40 10 40 Planned shipments 60 60 Q = 60; lead time = 1; SS = 10.

a. Develop the DRP records above for periods two through four given demands of 24, 38, and 27 in periods one, two, and three.

b. Complete the same records using the error addback method. What differences occur?