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The MPS for product A calls for 100 units to be completed in week 4 and 200 units in week 7 (the lead time is 1 week). Spare part demand for Item B is 10 units per week. The bill of materials for product A is shown on the right, and the inventory records are shown below.
Item Item
Data category B C
Lot sizing rule FOQ = 500 LFL
Lead time (weeks) 2 3
Beginning (on-hand) inventory 100 10
Scheduled receipts None 200 (week 2)
a. Develop a material requirement plan for the next 7 weeks for items B and C.
b. Will any action notices be generated? If so, explain what they are and why they must be generated
Explain Inventory Procurement Cost and Inventory Carrying Cost. Inventory Procurement Cost and Inventory Carrying Cost: Inventory is a detailed list of such movable items which
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