a. In what periods are there planned order releases? b. What happens to the timing, number of planned order releases, and average inventory (for periods 1 through 6) if 15 units of safety stock are required? c. What happens to the timing, number of planned order releases, and average inventory (for periods 1 through 6) if a one-week safety lead time is used instead of the safety stock?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 5EA: Akira Company had the following transactions for the month. Calculate the ending inventory dollar...
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5. Develop an MRP spreadsheet record for six periods using the following parameters for the item:
Period
1
2
3
4
5
Gross requirements
20
20
40
30
30
30
Lead time
1 period
Lot size
50 units
Safety stock
Inventory
Scheduled receipt
O units
2 units
50 units in period 1
a. In what periods are there planned order releases?
b. What happens to the timing, number of planned order releases, and average inventory (for
periods 1 through 6) if 15 units of safety stock are required?
c. What happens to the timing, number of planned order releases, and average inventory (for
periods 1 through 6) if a one-week safety lead time is used instead of the safety stock?
Transcribed Image Text:5. Develop an MRP spreadsheet record for six periods using the following parameters for the item: Period 1 2 3 4 5 Gross requirements 20 20 40 30 30 30 Lead time 1 period Lot size 50 units Safety stock Inventory Scheduled receipt O units 2 units 50 units in period 1 a. In what periods are there planned order releases? b. What happens to the timing, number of planned order releases, and average inventory (for periods 1 through 6) if 15 units of safety stock are required? c. What happens to the timing, number of planned order releases, and average inventory (for periods 1 through 6) if a one-week safety lead time is used instead of the safety stock?
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