Material Requirements Planning – Step by Step

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Q: FireKing Office Products, a manufacturer of fireproof file cabinets, uses MRP to schedule its production. Demand and inventory data for its “Signature Series Files” model are given in the table below.

Period 1 2 3 4 5
Demand 20 40 30 10 45

Ordering Cost = $100 per order
Holding Cost = $1 per file cabinet per week
Lead Time = 1 period
Beginning Inventory = 25

Complete an MRP matrix for the “Signature Series Files” model using:
a) No lot sizing
b) Minimum 75 lot sizing
c) Multiple 50 lot sizing
Which lot sizing rule do you recommend?

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