(Solved): When completing a MRP schedule you are given the following information. Cafetv stock 0 . lead time ...

Expert Answer

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To calculate the projected available balance for period 4, we need to first calculate the net requirements for each period between period 1 and period 4.

Given that the initial stock is 0 and the economic order quantity (EOQ) is 50, we can calculate the reorder point as follows:

Reorder Point = Lead time demand + Safety stock
Lead time demand = Projected demand during lead time = 35 units
Safety stock = 0 (given)

Reorder Point = 35 + 0 = 35 units

This means that we should place an order for 50 units when the projected available balance reaches 35 units. The order will arrive after a lead time of 2 weeks, which means that we need to have enough stock to cover the demand during that lead time.

Using this information, we can calculate the net requirements for each period:

- Period 1: Projected demand = 35 units. Net requirements = 35 - 0 = 35 units.
- Period 2: Projected demand = unknown. Net requirements = 50 (EOQ) - 35 (projected available balance at end of period 1) = 15 units.
- Period 3: Projected demand = unknown. Net requirements = 15 (reorder point) - 0 (projected available balance at end of period 2) = 15 units.
- Period 4: Projected demand = unknown. Net requirements = 50 (EOQ) - 15 (projected available balance at end of period 3) = 35 units.