Question: Lot Sizing in Mate rial Requirement System

Michael Jordan, senior in the department of management at JSU, recently got a job as a production planner at Honda Automotive Assembly Plant in Lincoln, Alabama. His first task on the job training is to review the master production plan shown below: (Initial inventory = 150 units, Ordering cost = $200 per order, Lead time = 1 week, Holding cost = $1 per unit per week.)

Develop an ordering plan and costs for this plant using the following techniques.

1. Develop the lot-for-lot MRP table and calculate the total relevant costs. (6 points)
   
   Holding Cost = Ordering Cost = Total Cost =
2. Develop the Economic Order Quantity (EOQ) lot sizing technique. (Assume EOQ = 200) (6 points)
   
   Holding Cost = Ordering Cost = Total Cost =
3. Develop the Periodic Order Quantity (POQ) lot sizing technique. (Assume POQ Interval = 2 weeks) (6 points)
   
   Holding Cost = Ordering Cost = Total Cost =
4. Among the three lot sizing techniques above, which has the lowest cost? (2 point)

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