Problem:

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 as follows:

Item B:

Lot sizing rule: FOQ=500

Lead time (wks): 2

Beginning (on-hand) inventory: 100

Scheduled receipts: none

Item C:

Lot sizing rule: LFL

Lead time (wks): 3

Beginning (on-hand) inventory: 10

Scheduled receipts: 200 (week 2)

Required:

i) Develop a material requirement plan for the next 7 weeks for Item B and C.

ii) Will any action notices be generated? If so, explain what they are and why they must be generated.

Determine the solution of the given problem.