Develop a material requirements plan for end item P and its components, given the tree below. Assume that all lead times are one week, and that lot-for-lot ordering is used except for item F, which is ordered in multiples of 400 units.
One hundred units of P are needed at the start of each of weeks 4 and 8.
Beginning inventories are: 20 P, 100 A, and 200 F.
Scheduled receipts are: 800 F at the start of week 1.
Definitions:
General Ledger
A complete record of all financial transactions over the life of a company.
Debit Balances
Accounts on the left-hand side of a double-entry bookkeeping system that typically signify assets or expenses.
Permanent Account
An account that carries its ending balance over from one accounting period to the next, such as assets, liabilities, and equity accounts.
Doubtful Accounts
Accounts receivable that a company believes it may not be able to collect, often leading to the creation of an allowance for doubtful accounts.
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