King Furniture manufactures furniture including chairs and components in South India. While it has corporate demand, demand for its chairs is irregular. It developed a 12-week material requirement plan (MRP) to produce chairs given a 2-week lead time. The MRP identifies weekly demand forecasts, current inventory levels, and schedules production to meet demand while maintaining adequate inventory levels. It calculated the net production requirements as demand minus inventory on hand over 12 weeks to be 1940 chairs to be produced, utilizing the initial inventory of 300 chairs.