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 shown below.
Item Item
Data category B C
Lot sizing rule FOQ = 500 LFL
Lead time (weeks) 2 3
Beginning (on-hand) inventory 100 10
Scheduled receipts None 200 (week 2)
a. Develop a material requirement plan for the next 7 weeks for items B and C.
b. Will any action notices be generated? If so, explain what they are and why they must be generated.