Figure 16.40 illustrates the BOM for product A. The MPS start row in the master production schedule for product A calls for 50 units in week 2 65 units in week 5 and 80 units in week 8. Item C is produced to make A and to meet the forecasted demand for replacement parts. Past replacement part demand has been 20 units per week (add 20 units to C s gross requirements). The lead times for items F and C are 1 week and for the other items the lead time is 2 weeks. No safety stock is required for items B C D E and F. The L4L lot-sizing rule is used for items B and F; the POQ lot-sizing rule (P = 3) is used for C. Item E has an FOQ of 600 units and D has an FOQ of 250 units. On-hand inventories are 50 units of B 50 units of C 120 units of D 70 units of E and 250 units of F. Item B has a scheduled receipt of 50 units in week 2. Develop a material requirements plan for the next 8 weeks for items B C D E and F.
E (1)
F (2)
F (1)
E (2)
D (2)
C (1)
B (2)

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