Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, two-period lot-sizing method is used, what will be the quantity of the first planned receipt

100 units

Explanation:

Given the following net requirement for component J:

60 units in week 2

40 units in week 3

60 units in week 5

Lot sizing involves determining the amount or quantity of items which needs to be ordered or produced. There are various lot sizing techniques. However, the fixed period requirements involves choosing a fixed number of period for determining the number of orders of each item to make. The net total number of units is then calculated, this gives the total quantity of planned receipt or requirement.

Hence, the quantity of the first planned receipt will be :

Units in week 3, then units in week 5 (2 - period interval)

Net total = (40 + 60) units = 100 units

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