Irvine Consolidated Closets (ICC) builds and sells shelving for homes and offices. For a certain shelving unit, SS1, ICC has gross requirements of 500, 800, and 650 units in weeks 4, 5, and 6, respectively. The lead-time on the SS1 shelving unit is two weeks. ICC currently has 600 of the SS1 on hand and this product is ordered in lot sizes of 300, that is, the order in multiples of 300.Determine the MRP schedule for the SS1 unit over a time frame of weeks 1 through 6. When and for how many units should ICC place their orders for the SS1?A key component of the SS1 is the TT2. Each SS1 contains four TT2s. Currently TT2’s are ordered in lots of size 1000 and there are 800 on hand. TT2s have a one-week lead time. Determine the MRP schedule for the TT2 unit over a time frame of weeks 1 through 6. When and for how many units should ICC place their orders for the TT2? Suppose annual demand for the SS1 shelving unit is 32,500. ICC’s holding cost is $0.50 per week for each SS1 unit. Each time an order of any size of the SS1 is received, there is a cost of $500. What lot size would be best for ordering the SS1 shelves assuming a 50-week year?Redo the MRP schedule for SS1 performed in part a using the lot size computed in part c. If the net requirement is greater than the lot size in a particular period, then assume that one can order the net requirement amount to meet the need. Is this new policy less costly than the original one over the 6-week horizon? Provide insight into the difference.

Following is the MRP table of SS1 SS1: Lead Time= 2 weeks; On hand = 600; Lot size 300 1 2 3…

Answered: Irvine Consolidated Closets (ICC)…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section2.5: Ordering With Quantity Discounts And Demand Uncertainty

Problem 5P

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Irvine Consolidated Closets (ICC) builds and sells shelving for homes and offices. For a certain shelving unit, SS1, ICC has gross requirements of 500, 800, and 650 units in weeks 4, 5, and 6, respectively. The lead-time on the SS1 shelving unit is two weeks. ICC currently has 600 of the SS1 on hand and this product is ordered in lot sizes of 300, that is, the order in multiples of 300.

Determine the MRP schedule for the SS1 unit over a time frame of weeks 1 through 6. When and for how many units should ICC place their orders for the SS1?
A key component of the SS1 is the TT2. Each SS1 contains four TT2s. Currently TT2’s are ordered in lots of size 1000 and there are 800 on hand. TT2s have a one-week lead time. Determine the MRP schedule for the TT2 unit over a time frame of weeks 1 through 6. When and for how many units should ICC place their orders for the TT2?
Suppose annual demand for the SS1 shelving unit is 32,500. ICC’s holding cost is $0.50 per week for each SS1 unit. Each time an order of any size of the SS1 is received, there is a cost of $500. What lot size would be best for ordering the SS1 shelves assuming a 50-week year?
Redo the MRP schedule for SS1 performed in part a using the lot size computed in part c. If the net requirement is greater than the lot size in a particular period, then assume that one can order the net requirement amount to meet the need. Is this new policy less costly than the original one over the 6-week horizon? Provide insight into the difference.

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