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Material Requirements Planning - Step by Step

Q: 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?

Operation Research, Management Studies

  • Category:- Operation Research
  • Reference No.:- M924089

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