Question

The following is a partial MRP table. Based on the information provided, an inventory holding cost of $0.39 per unit per week and a setup cost of $139 per order, what would be the planned order release for week 2 using a part period balancing lot sizing approach? Week Gross Requirements Scheduled Receipts On-Hand Inventory Net Requirements Time Phased Net Requirements Planned Order Releases 0 1 2 3 4 5 10 30 20 15 20 40 L | 10 40 | 10000 N o 10 15 20 0 10 15 200

Answer 1

I wear GIDSS Rey schedule Recaspis oli 1 2 10 30 3 4 5 20 lis 20 (0) - Hand Inr 10 4010 lolo lo elois Tolio Lis 20. o Ner Requiremenit Time Phased Net Req planned orar release 20 15420p * planned order for the week ² is zo wululo average Resurement: 20+30+20 +15+20)/5 = 9.5/5 - 19 Past Period balancing lüt size : cave / 2x average Gross & serup & INN Holding cost req ust number of weals set cy cost = 1391W Holding cost = 0.39 * 2 x19x139 70.39 2,05 9.99 = 21.996 20.29 20 This method ordering costs of lot sizing minimizes the sum a and inventory carrying casts for single item.