Question

In: Operations Management

Minimum order quantity is 500 units, lead time is 1 week. What is/are the Net Requirements for week 8?

Week

7

8

9

10

11

12

Gross Requirements

0

300

400

400

400

200

Scheduled Receipts

500

Projected ending inventory: 100

100

Net requirements

???

Planned Receipts

Planned orders

Q1: Minimum order quantity is 500 units, lead time is 1 week. What is/are the Net Requirements for week 8?

a. 300 units.

b. None of these answers is correct.

c. 500 units.

d. Negative 300 units.

e. 0 units.

Week

7

8

9

10

11

12

Gross Requirements

0

300

400

400

400

200

Scheduled Receipts

500

Projected ending inventory: 100

100

???

Net requirements

Planned Receipts

Planned orders

Q2: Minimum order quantity is 500 units, lead time is 1 week. What is the Ending Inventory for week 8?

a. 300 units.

b. 800 units.

c. None of these answers are correct.

d. 0 units.

e. 200 units.

Week

7

8

9

10

11

12

Gross Requirements

0

300

400

400

400

200

Scheduled Receipts

500

Projected ending inventory: 100

100

Net requirements

Planned Receipts

???

Planned orders

Q3: Minimum order quantity is 500 units, lead time is 1 week. What is/are the Planned Receipts for week 8?

a. 0 units.

b. 300 units.

c. 200 units.

d. None of these answers is correct.

e. 500 units.

Week

7

8

9

10

11

12

Gross Requirements

0

300

400

400

400

200

Scheduled Receipts

500

Projected ending inventory: 100

100

???

Net requirements

Planned Receipts

Planned orders

Q4: Minimum order quantity is 500 units, lead time is 1 week. What is/are the Net Requirements for week 9?

a. 0 units.

b. None of these answers is correct.

c. Negative 900 units.

d. 100 units.

e. 400 units.

Solutions

Expert Solution

Week

Lead time = 1 week

Minimum order quantity = 500

7

8

9

10

11

12

Gross requirement

0

300

400

400

400

200

Scheduled receipt

0

500

0

0

0

0

Projected ending inventory: 100

100

300

400

0

100

400

Net receipt

0

0

500

0

500

500

Planned receipt

0

0

500

0

500

500

Planned order

0

500

0

500

500

0

Q.1 Net requirement for week 8 : e. 0 units

Q.2 ending inventory for week 8 = a. 300

Q.3 . Planned receipt for week 8 = a. 0 units

Q.4 . Net requirement for week 9 = d. 100 units


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