Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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2. Use the following MPS, BOM, and inventory record to answer the MRP questions.
a) Master Production Schedule: The following table shows the MPS start dates already
offset for item A's lead time.
Week
Week
2
4
6
MPS
60
70
40
b) Bill of materials:
• End item A uses 1 each of component D and
each of subassembly C.
• Subassembly C uses 2 each of component E
c) Inventory records:
D
Lot sizing rule
Lead time (weeks)
Beginning on-hand
FOQ = 50
РOO (Р-2)
L4L
3
30
30
inventory
Safety stock
Scheduled receipts
20
50 (week 1)
30 (week 1)
90 (week 1)
Questions:
> Develop a material requirement plan for item C, D and E
> What is the largest quantity of projected on hand inventory for any one
of theweeks for item D?
> How many planned order releases are there for item C?
What is the planned receipt in week 3 for item E?
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Transcribed Image Text:2. Use the following MPS, BOM, and inventory record to answer the MRP questions. a) Master Production Schedule: The following table shows the MPS start dates already offset for item A's lead time. Week Week 2 4 6 MPS 60 70 40 b) Bill of materials: • End item A uses 1 each of component D and each of subassembly C. • Subassembly C uses 2 each of component E c) Inventory records: D Lot sizing rule Lead time (weeks) Beginning on-hand FOQ = 50 РOO (Р-2) L4L 3 30 30 inventory Safety stock Scheduled receipts 20 50 (week 1) 30 (week 1) 90 (week 1) Questions: > Develop a material requirement plan for item C, D and E > What is the largest quantity of projected on hand inventory for any one of theweeks for item D? > How many planned order releases are there for item C? What is the planned receipt in week 3 for item E?
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