The ordering plan and cost for lot for lot. Introduction: Lot for Lot: The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period. Net requirements plan: The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

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Answer 1

Question

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

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Students have asked these similar questions

M. de Koster, of Rene Enterprises, has the master production plan shown here: Lead time = I period; setup cost= $200; holding cost = $10 perweek; stockout cost = $10 per week. Your job is to develop an ordering plan and costs for:a) Lot-for-lot. b) EOQ.c) POQ. d) Which plan has the lowest cost?

Grace Greenberg, production planner for Science and Technology Labs, in New Jersey, has the master production plan shown here: Lead time= I period; setup costs = $200; holding cost = $10 perweek; stockout cost = $10 per week. Develop an ordering planand costs for Grace, using these techniques:a) Lot-for-lot. b) EOQ.c) POQ. d) Which plan has the lowest cost?

Hip Replacements, Inc., has a master production schedule forits newest model, as shown below, a setup cost of $50, a holdingcost per week of $2, beginning inventory of 0, and lead time of1 week. What are the costs of using lot-for-lot for this l0-weekperiod? WEEK 1 2 3 4 5 6 7 8 9 10Gross requirements 0 0 50 0 0 35 15 0 100 0Scheduled receiptsProjected on hand 0 0 0 0 0 0 0 0 0 00Net requirements 0 0 50 0 0 35 15 0 100Planned order receipts 50 35 15 100Planned order releases 50 35 15 100

Answer 2

Question

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Expert Solution & Answer

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See solution

Answer 5

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Answer 6

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 7

Chapter 14, Problem 21P

a)

Summary Introduction

To determine: The ordering plan and cost for lot for lot.

Introduction:

Lot for Lot:

The lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 8

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 9

b)

Summary Introduction

To determine: The ordering plan and cost for EOQ.

Introduction:

Economic order quantity (EOQ):

The economic order quantity is the number of units a firm must add to their stock while making each order. The notion of EOQ is to reduce the total cost of inventory of the firm.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 10

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 11

c)

Summary Introduction

To determine: The ordering plan and cost for POQ.

Introduction:

Periodic order quantity (POQ):

The POQ is the standard quantity of units that will be ordered over a fixed period of time. This method is followed when the usage of raw materials is consistent and is predictable.

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

Answer 12

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Answer 13

d)

Summary Introduction

To determine: The plan which has the lowest cost.

Answer 14

Expert Solution & Answer

Answer 15

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Answer 16

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Answer 17

Ch. 14 - What is the difference between a gross...Ch. 14 - Prob. 2DQ Ch. 14 - What are the similarities between MRP and DRP?Ch. 14 - How does MRP II differ from MRP?Ch. 14 - Which is the best lot-sizing policy for...Ch. 14 - What impact does ignoring carrying cost in the...Ch. 14 - MRP is more than an inventory system; what...Ch. 14 - What are the options for the production planner...Ch. 14 - Master schedules are expressed in three different...Ch. 14 - What functions of the firm affect an MRP system?...

Solution Summary: The author explains that the lot for lot method of requirements plan is the process where the planned order release will be equal to the net requirement of the period.

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