A manufacturer’s master product schedule of product is given below:
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Period Planned Week – 1
Week – 2 Week – 3
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Planned Production 50 100 100
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Week – 4 Week – 5 Week – 6
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100 150 50
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Each product requires a purchased component A in its sub – assembly. Before the start of week – 1, there are 400 components of type A in stock. The lead time to procure this component is 2 weeks and the order quantity is 400. Number of components A per product is only one. The manufacturer should place the order for:
(a) 400 components in week - 1
(b) 400 components in week – 3
(c) 200 components in week – 1 and 200 components in week – 3
(d) 400 components in week – 5