Complete an mrp matrix for cabinet using no lot sizing

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Reference no: EM132293584

Sandy’s Cabinet Company uses MRP to schedule its production. Due to the current recession and the need to cut costs, Sandy has targeted the inventory investment area for cost reduction. However, the company does not want to reduce its customer service level in the process. Demand and inventory data for a standard two-drawer file cabinet are given in the following table. Complete an MRP matrix for the cabinet using (a) no lot sizing, (b) minimum of 200, and (c) multiples of 175 lot sizing. Which lot-sizing rule do you recommend?

Ordering cost =$100 per order

Holding cost = $1 per cabinet per week (Notice the unit change)

Lead time = 1 period

Beginning inventory = 150

Demand: Period 1/145 Period 2/165 Period 3/155 Period 4/135 Period 5/170

Reference no: EM132293584

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