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.