Developing a MRP for Space Age Furniture Company

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Introduction
“For companies today, MRP is a computerized information system. As such, it requires data to provide the information needed for decision making” (Vonderembse & White, 2013, Section 9.5, para 6). The goal of this paper is to read the Space Age Furniture Company case study and develop an MRP for Space Age Furniture Company using the information in the case including the production of sub-assemblies in lot sizes of 1,000 considering the lot size of 1,000 for sub-assemblies has produced a lumpy demand for part 3079; suggest ways for improvements over sub-assemblies in lot sizes of 1,000, analyze the trade-off between overtime costs and inventory costs, calculate a new MRP that improves the base MRP, compare and contrast the types of production processing—job shop, batch, repetitive, or continuous—and determine which the primary mode of operation is and why, describe ways that management can keep track of job status and location during production and recommend any changes that might be beneficial to the company and/or add value for the customer.
MRP Calculation with Sub-assemblies
Master Schedule
Week
1 2 3 4 5 6
Gemini 600 400 700 500 400 600
Saturn 300 400 400 600 300 300

Bill of Materials
Product Description Gemini Item A Saturn: item B
Sub assembly 1 1
3079 1 1

On-hand Inventory & Lead time
Component On-hand Inventory Lead time
Gemini Item A 0 1
Saturn: item B 0 1
Subassembly C 0 1
Subassembly D 0 1
3079 0

Improvements over

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