Assume that you are the manager of a shop that assembles power tools. You have just received an order for 57 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws is Item Lead Time (weeks) On Hand Components Saw 2 15 A(2), B(1), C(4) A 1 10 E(3), D(1) B 2 5 D(2), F(3) C 2 65 E(2), D(2) D 1 20 E 1 10 F 2 30
A. if the vendor is willing to offer a discount of $10 per order in multiples of 50 units (e.g. 100,150) would you advise the manager to take advantage of the offer in either period? if so what order size would you recommend? (round intermediate calculation to 2 decimal places)
B. Develop the material requirements plan for B component E using lot-for-lot- ordering: leave no cell blank - be certain to enter "0" wherever required