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, three-period lot-sizing method is used, what will be the quantity of the first planned receipt?
A)60
B)100
C)160
D)Cannot be determined
E)None of the above

Question

Quizplus · Accepted Answer

The fixed-period, three-period lot-sizing method means that inventory is ordered in fixed time intervals of three weeks, regardless of the demand in each individual week. The quantity ordered is then determined based on meeting the net requirements for that three-week period. 
Applying this method to component J, we can combine the net requirements for the weeks 2-4 period: 60 + 40 + 0 = 100 units. 
Thus, the first planned receipt should be for 100 units (Option B).

Net Requirements for Component J Are as Follows: 60 Units