Question

American Electronics produces​ Tough-Robot for lawn mowing purposes. The production manager of American Electronics would like to create an MRP for their​ Tough-Robot with a minimum cost possible for the plan. The following table show gross requirements of​ Tough-Robot for ten weeks. You are asked to develop a solution using an ordering system that always orders 100 units the week prior to a shortage​ (a fixed order quantity of​ 100) as a Lot Sizing technique. What is the cost of this ordering​ system?     

Period	1	2	3	4	5	6	7	8	9	10
Gross requirements	45	20	40	0	10	40	30	0	30	55

Holding cost = ​$1/unit/week;

setup cost =​ $200​;

lead time = 1 ​week;

beginning inventory = 45 units.

Prepare a net requirements plan ​(enter your responses as whole​ numbers).

Period		1	2	3	4	5	6	7	8	9	10
Gross requirements		45	20	40	0	10	40	30	0	30	55
​On-hand at beginning of period	45	?	?	?	?	?	?	?	?	?	?
​On-hand at end of period		?	?	?	?	?	?	?	?	?	?
Net requirements		?	?	?	?	?	?	?	?	?	?
Order receipt			?	?	?	?	?	?	?	?
?Order release		?	?	?	?	?	?	?	?	?

a.) The holding cost of this ordering system is ​? ​(enter your response as a whole​ number).

b.) The setup cost of this ordering system is ​$? (enter your response as a whole​ number).

c.)The total cost of this ordering system is ​$? ​(enter your response as a whole​ number).

Answer 1

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