There are 200 units in inventory at the start of week 1. What are the net requirements in week 4 if there is a scheduled receipt of 100 units every other week and a two week production lead time? $$\begin{array} { | l | c | c | c | c | c | }
\hline & 1 & 2 & 3 & 4 & 5 \
\hline \text { Gross Requirements } & 550 & 450 & 400 & 400 & 500 \
\hline \text { Scheduled receipts } & 100 & 0 & 100 & 0 & 100 \
\hline \text { Projected ending Inventory } & & & & & \
\hline \text { Net Requirements } & & & & & \
\hline \text { Planned Receipts } & 350 & 450 & & & \
\hline \text { Planned Orders } & 350 & 300 & & & \
\hline
\end{array}$$

Question

There are 200 units in inventory at the start of week 1. What are the net requirements in week 4 if there is a scheduled receipt of 100 units every other week and a two week production lead time? $$\begin{array} { | l | c | c | c | c | c | } 
\hline & 1 & 2 & 3 & 4 & 5 \
\hline \text { Gross Requirements } & 550 & 450 & 400 & 400 & 500 \
\hline \text { Scheduled receipts } & 100 & 0 & 100 & 0 & 100 \
\hline \text { Projected ending Inventory } & & & & & \
\hline \text { Net Requirements } & & & & & \
\hline \text { Planned Receipts } & 350 & 450 & & & \
\hline \text { Planned Orders } & 350 & 300 & & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The net requirements in week 4 are 250 units. This is because the gross requirements in week 4 are 400 units, and there is a scheduled receipt of 100 units in week 3. This means that the net requirements in week 4 are 400 - 100 = 250 units.

There Are 200 Units in Inventory at the Start of Week