Assignment:
Q: Consider an end item composed of a single component. Demand for the end item is 20 in week 1, four in week 2, two in week 3, and zero until week 8 when there is a demand of 50. Currently there are 25 units on hand and no scheduled receipts. For the component there are 10 units on hand and no scheduled receipts. Planned order releases for all the items are computed by using the lot-for-lot method with a setup cost of $248 and a carrying cost of $1 per week. The planned lead-time for the end time is 1 week, and for the component it is 3 weeks.
Compute the planned order releases for the end item and the component. Are there any problems?
Apply part-period balancing and Wagner-Whitin for your lot-sizing and compute the planned order releases for the end item and the component. Compare the total cost using different lot sizing methods.
The forecast for the demand in week 8 has been changed to 49. Re-compute the planned order releases for the end item and the component. Are there any problems?