Reference no: EM13333787
End item A has a planned lead time of two weeks. There are currently 120 units on hand and no scheduled receipts. The master production schedule (MPS) data for A are given in the table below.
Period 1 2 3 4 5 6 7 8 9 10
Demand 41 44 84 42 84 86 7 18 49 30
(a). Compute the planned order releases for item A using lot-for-lot lot sizing.
Period 1 2 3 4 5 6 7 8 9 10
Planned Order Releases _ _ _ _ _ _ _ _ _ _
(b). Compute the planned order releases for item A using part-period balancing, where the ratio of set-up cost to holding cost is 200.
Period 1 2 3 4 5 6 7 8 9 10
Planned Order Releases _ _ _ _ _ _ _ _ _ _
(c). Assuming a holding charge of $1 per item per period carried, what is the total cost of the plan you computed in part (b)?
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