Consider the Following Requirements for a Certain Product Beginning Inventory = 500 Units
Setup Cost = $500 Per

Essay

Consider the following requirements for a certain product.
$$\begin{array} { | l | l | l | l | l | l | l | l | l | } \hline\text { Period } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\\hline \text { Gross requirements } & 0 & 200 & 200 & 500 & 0 & 400 & 0 & 400 \\\hline\end{array}$$ Beginning inventory = 500 units
Setup cost = $500 per setup
Lead time = 1 week
Holding cost = $3 per unit per week
a. Develop the lot-for-lot MRP table.
b. Calculate the total relevant costs.