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Note: Use the following format for all your MRP matrices: Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipts Planned order releases Assume the following: Order cost Inventory carrying Inventory on hand Lead time R60/order R1/unit/period 30 units 1 period 0 1 30 Question 1 Consider the gross requirements for product X as follows (units): 0 3 4 20 10 Gross requirements Illustrate the impact of lot sizing on the total cost (inventory carrying cost and order cost) for the following two scenarios: No lot sizing Economic order quantity 1 2 50 PERIOD 2 3 4 5 40

Note: Use the following format for all your MRP matrices: Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipts Planned order releases Assume the following: Order cost Inventory carrying Inventory on hand Lead time R60/order R1/unit/period 30 units 1 period 0 1 30 Question 1 Consider the gross requirements for product X as follows (units): 0 3 4 20 10 Gross requirements Illustrate the impact of lot sizing on the total cost (inventory carrying cost and order cost) for the following two scenarios: No lot sizing Economic order quantity 1 2 50 PERIOD 2 3 4 5 40

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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For Question 1 you are required to mannualy (without the use of excel) develop two MRP matrices: one with no lot sizing (you order what is required) and a lot seize equal to the EOQ. To determine the EOQ note that the inventory carrying cost is given as R1/unit/period. This means that you have to calculate the average demand per period and use this demand value in your EOQ calculation. This is then the order quantity to be used for the second MRP matrix.
Note: Use the following format for all your MRP matrices: Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipts Planned order releases Gross requirements No lot sizing Economic order quantity Question 1 Consider the gross requirements for product X as follows (units): 0 4 10 Assume the following: Order cost 1 30 Inventory carrying Inventory on hand Lead time 0 R60/order R1/unit/period 30 units 1 period 1 2 50 PERIOD 2 3 3 20 Illustrate the impact of lot sizing on the total cost (inventory carrying cost and order cost) for the following two scenarios: 5 40 4
Transcribed Image Text:Note: Use the following format for all your MRP matrices: Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipts Planned order releases Gross requirements No lot sizing Economic order quantity Question 1 Consider the gross requirements for product X as follows (units): 0 4 10 Assume the following: Order cost 1 30 Inventory carrying Inventory on hand Lead time 0 R60/order R1/unit/period 30 units 1 period 1 2 50 PERIOD 2 3 3 20 Illustrate the impact of lot sizing on the total cost (inventory carrying cost and order cost) for the following two scenarios: 5 40 4
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