Lot Sizing Rule
xoon
assignment_week_72.docDue by 11 pm November 18th
3) FireKing Office Products, a manufacturer of fireproof file cabinets, uses MRP to schedule its production. Demand and inventory data for its “Signature Series Files” model are given in the table below.
|
Period |
1 |
2 |
3 |
4 |
5 |
|
Demand |
20 |
40 |
30 |
10 |
45 |
Ordering Cost = $100 per order
Holding Cost = $1 per file cabinet per week
Lead Time = 1 period
Beginning Inventory = 25
Complete an MRP matrix for the “Signature Series Files” model using:
a) No lot sizing
b) Minimum 75 lot sizing
c) Multiple 50 lot sizing
Which lot sizing rule do you recommend?
PAGE
1
