There is no beginning inventory. What are the net requirements in week 4 if there is a scheduled receipt of 100 units each week and a two week production lead time? $$\begin{array} { | l | c | c | c | c | c | }
\hline & 1 & 2 & 3 & 4 & 5 \
\hline \text { Gross Requirements } & 500 & 450 & 400 & 500 & 300 \
\hline \text { Scheduled receipts } & 100 & 100 & 100 & 100 & 100 \
\hline \text { Projected ending Inventory } & & & & & \
\hline \text { Net Requirements } & & & & & \
\hline \text { Planned Receipts } & 450 & 400 & 300 & 300 & \
\hline \text { Planned Orders } & 300 & 300 & & & \
\hline
\end{array}$$

Question

There is no beginning inventory. What are the net requirements in week 4 if there is a scheduled receipt of 100 units each week and a two week production lead time? $$\begin{array} { | l | c | c | c | c | c | } 
\hline & 1 & 2 & 3 & 4 & 5 \
\hline \text { Gross Requirements } & 500 & 450 & 400 & 500 & 300 \
\hline \text { Scheduled receipts } & 100 & 100 & 100 & 100 & 100 \
\hline \text { Projected ending Inventory } & & & & & \
\hline \text { Net Requirements } & & & & & \
\hline \text { Planned Receipts } & 450 & 400 & 300 & 300 & \
\hline \text { Planned Orders } & 300 & 300 & & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

To calculate the net requirements in week 4, we first need to calculate the projected ending inventory for week 3.

Projected Ending Inventory week 3 = (Gross Requirements week 3 + Scheduled Receipts week 3) - Planned Receipts week 3 = (400 + 100) - 300 = 200

Now, we can calculate the net requirements for week 4:

Net Requirements week 4 = Gross Requirements week 4 - Projected Ending Inventory week 3 = 500 - 200 = 300

Therefore, the best choice is B)300.

There Is No Beginning Inventory A)250 B)300 C)350 D)400

There Is No Beginning Inventory A)250
B)300
C)350
D)400