Using a lot-for-lot ordering strategy for the following item, what is the net requirements amount in week 3? (Note: Use a lead time of one week and the gross requirements and scheduled receipts depicted below, and assume you begin with 100 units in inventory.)Week 1 2 3 4
Gross requirements 0 100 80 15
Scheduled receipts 75 0 0 0Projected ending inventory (100) 15 units Net requirements 0 units
Planned order receipts 80 units
Planned order releases 5 unitsSafety stock in an MRP system
is planned at the part level, independent of the safety stock of other parts.
must provide a 100% service level.
is used to provide flexibility to meet changing customer requirements.
is never needed.