Q4: M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting manufacturer supplies the wheels to the M/S XYZ Company through a purchase contract. The sub-contracting company initially purchases aluminium billets as raw material and manufactures wheels by forming each billet into wheel rims. Both the rims (front and rear) are assembled with spokes, front and rear hubs. Front wheels comprise a front rim, spokes and a front hub. Rear wheels comprise a rear rim, 24 spokes and a rear hub. 1) Draw the Bill of Material (BOM) tree for the front and rear wheels. (i) Referring to table 40) and 4(ii), complete the Material Requirements Planning (MRP) and determine when to Purchase Orders placed for the spokes. Table 4 (i) Week 12 13 14 15 16 17 Demand for the bikes 80 70 90 120 100 85 Demand of Front Rim 50 40 30 125 - The demand of Rear Rim 70 60 80 Table 4 (ii) Part/Component Lead Time Stock on Hand Batch Size Safety Stock Bike #N/A 100 Front wheel 1 #N/A 120 100 Rear wheel 1 #N/A 150 125 Front Rim 2 #N/A 150 100 Rear Rim 2 #N/A 100 100 Front Hub 1 #N/A 150 50 Rear Hub 1 #N/A 100 50 Spokes 1 #N/A 3,000 1,100

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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number of spokes for front wheel =20

Q4: M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting manufacturer supplies the wheels to the M/S XYZ Company through a
purchase contract. The sub-contracting company initially purchases aluminium billets as raw material and manufactures wheels by forming each billet into wheel rims. Both the rims (front
and rear) are assembled with spokes, front and rear hubs. Front wheels comprise a front rim, spokes and a front hub. Rear wheels comprise a rear rim, 24 spokes and a rear hub.
(i) Draw the Bill of Material (BOM) tree for the front and rear wheels.
(i) Referring to table 4(i) and 4(ii), complete the Material Requirements Planning (MRP) and determine when to Purchase Orders placed for the spokes.
Table 4 (i)
Week
12
13
14
15
16
17
Demand for the bikes
80
70
90
120
100
85
Demand of Front Rim
50
40
30
125
The demand of Rear Rim
70
60
80
Table 4 (ii)
Part/Component
Lead Time
Stock on Hand
Batch Size
Safety Stock
Bike
1
#N/A
100
Front wheel
1
#N/A
120
100
Rear wheel
#N/A
150
125
Front Rim
2
#N/A
150
100
Rear Rim
2
#N/A
100
100
Front Hub
1
#N/A
150
50
Rear Hub
1
#N/A
100
50
Spokes
1
#N/A
3,000
1,100
Transcribed Image Text:Q4: M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting manufacturer supplies the wheels to the M/S XYZ Company through a purchase contract. The sub-contracting company initially purchases aluminium billets as raw material and manufactures wheels by forming each billet into wheel rims. Both the rims (front and rear) are assembled with spokes, front and rear hubs. Front wheels comprise a front rim, spokes and a front hub. Rear wheels comprise a rear rim, 24 spokes and a rear hub. (i) Draw the Bill of Material (BOM) tree for the front and rear wheels. (i) Referring to table 4(i) and 4(ii), complete the Material Requirements Planning (MRP) and determine when to Purchase Orders placed for the spokes. Table 4 (i) Week 12 13 14 15 16 17 Demand for the bikes 80 70 90 120 100 85 Demand of Front Rim 50 40 30 125 The demand of Rear Rim 70 60 80 Table 4 (ii) Part/Component Lead Time Stock on Hand Batch Size Safety Stock Bike 1 #N/A 100 Front wheel 1 #N/A 120 100 Rear wheel #N/A 150 125 Front Rim 2 #N/A 150 100 Rear Rim 2 #N/A 100 100 Front Hub 1 #N/A 150 50 Rear Hub 1 #N/A 100 50 Spokes 1 #N/A 3,000 1,100
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