Question

What will the total cost be? (nearest whole number)

Develop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the following table. Period

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer: Total cost is $140+ $1400= $1540

Period 1 2 3 4 5 6 7 8 9 10 11 12 Total cost
Gross requirements GR 20 0 40 0 40 60 30 0 10 80 0 50
Projected inventory on hand PIOH 20 20 0 0 0 0 0 0 0 0 0 0
IOH= 140 inventory on hand IOH 40 20 20 0 0 0 0 0 0 0 0 0
Net requirements NR -20 -20 20 0 40 60 30 0 10 80 0 50
Q = L4L Planned order receipts (PR) 0 0 20 0 40 60 30 0 10 80 0 50
Lead Time LT=1 Planned order releases POR 0 20 0 40 60 30 0 10 80 0 50 0
Holding cost 70 70 0 0 0 0 0 0 0 0 0 0 140
setup cost (whenever there is new order reciept) 0 0 200 0 200 200 200 0 200 200 0 200 1400

repeat these steps for every week

steps
step 1 IOH= PIOH of last week
step 2 NR= GR -IOH
step 3 PR= in L4L PR=NR
step 4 projected inventory on hand PIOH= IOH+PR-GR
step 5 POR= PR of preceding week
step 6 (After completing whole MRP) Holding cost= 3.5$*PIOH

Excell Formula

C D E F G H I J K labor cost material cost N O
128 Period 1 2 3 4 5 6 7 8 9 10 11 12 Total cost
129 Gross requirements GR 20 0 40 0 40 60 30 0 10 80 0 50
130 Scheduled receipts SR 0 0 0 0 0 0 0 0 0 0 0 0
131 Projected inventory on hand PIOH =D132+D134-D129 =E132+E134-E129 =F132+F134-F129 =G132+G134-G129 =H132+H134-H129 =I132+I134-I129 =J132+J134-J129 =K132+K134-K129 =L132+L134-L129 =M132+M134-M129 =N132+N134-N129 =O132+O134-O129
132 IOH= 140 inventory on hand IOH 40 =D131 =E131 =F131 =G131 =H131 =I131 =J131 =K131 =L131 =M131 =N131
133 Net requirements NR =D129-D132 =E129-E132 =F129-F132 =G129-G132 =H129-H132 =I129-I132 =J129-J132 =K129-K132 =L129-L132 =M129-M132 =N129-N132 =O129-O132
134 Q = L4L Planned order receipts (PR) 0 0 20 =G133 =H133 =I133 =J133 =K133 =L133 =M133 =N133 =O133
135 Lead Time LT=1 Planned order releases POR =E134 =F134 =G134 =H134 =I134 =J134 =K134 =L134 =M134 =N134 =O134 =P134
136 Holding cost =3.5*D131 =3.5*E131 =3.5*F131 =3.5*G131 =3.5*H131 =3.5*I131 =3.5*J131 =3.5*K131 =3.5*L131 =3.5*M131 =3.5*N131 =3.5*O131 =SUM(D136:O136)
setup cost (whenever there is new order reciept) 0 0 200 0 200 200 200 0 200 200 0 200 =SUM(D137:O137)
Add a comment
Know the answer?
Add Answer to:
What will the total cost be? (nearest whole number) Develop a lot-for-lot solution and calculate total...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT