A Company That Makes Inkjet Printers Is Trying to Determine

question 73

Essay

A company that makes inkjet printers is trying to determine a MRP schedule for the print cartridges it needs in its newest model of printer.They have gross requirements of 1000 units in week 2 and 900 units in week 4.The minimum lot size is 500 units and the lead time is 1 week.They currently have 300 units on hand that includes a safety stock of 150 and another 100 units already allocated.They have 500 units scheduled for receipt in week 1.
a.What is the number of units available in week 1?
b.What is the planned order release in week 3?

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Definitions:

Cost Driver

A factor that causes or influences the cost of certain activities to change, such as the number of units produced, hours worked, or material used.

Support Department

A division or unit within an organization dedicated to providing necessary services and support to the operational sectors, facilitating their functions.

Advertising Campaigns

Organized series of promotional activities or advertisements with a specific message or purpose, aimed at reaching a particular audience.

Transfer Price

The price at which goods and services are sold between divisions within the same company or between subsidiaries of a parent company.