Concept explainers
The MRP Department has a problem. Its computer "died" just as it spit out the following information: Planned order release for item J27 = 640 units in week 2. The firm, has been able to reconstruct all the information they lost except the master
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- I understand that as per the calculations, the gross requirement for week 3 is 50 (25*2) (Item A's order releases), week 5 is 190 (20*2) + (150*1) (Item A's order releases + Item B's order releases), and week 6 is 300 (150*2) (Item A's order releases). But I want to know why do we do it that way because If I have a similar question do I always multiply item A's order release for week 3 by 2, week 5 (Item A's order releases x 2 + Item B's order releases x 1), and and week 6 (Item A's order releases x 2 ) I want to understand why we do that so I can anwser a similar question I don't understand why we do that have way just that you did it that wayarrow_forwardPrepare a master schedule based on the following information: Week 1 2 3 4 5 6 7 8 Forecast 500 500 600 600 750 750 900 800 Orders 540 470 325 200 105 45 10 0 Currently there are 700 units in inventory. Policy calls for a fixed order quantity of 1250 units. Can you receive another order for 250 items in week 1? Why? How many orders can be received in each period without altering the plan. If there are 1250 items in stock, what would be the answer of questions 2 and 3?arrow_forwardDiscuss the relationship between Materials Requirements Planning (MRP) and distribution requirements planning (DRP) in relation to the logistics functionarrow_forward
- What is MRP (Materials Requirement Planning) I and why is it important?arrow_forwardExplain the difference between a materials requirement planning (MRP) and Master Production Schedule. Provide examples how each are applied in the supply chain.arrow_forwardAssess the importance of inventory control and the various types of inventory related decisions by evaluating EOQ, ABC, MRP, JIT, and ERP models.arrow_forward
- At the Lebanese factory "DELCO", John is using a system to produce the bar codes attached on the product bulks for identification. Each bulk contains 100 units of a certain product, and all the information related to the products inside the bulk are then represented by the barcode. Once prepared, the bulks are transferred to a very large warehouse and the location of each one is entered on the system. At a later stage, John uses the barcode in the warehouse to identify the right bulks for delivery, after being scanned using a special wireless barcode scanner. This way, John can decide in a better way how and when to make the shipments. This system helps John to save time and minimize the errors, and to perform his daily work in the most efficient way. On the other side, "DELCO" is facing a problem of late delivery to customers. In fact, dealing with hundreds of suppliers, wholesalers, and agents around the world makes this process very complicated. Most of the times, the shipments from…arrow_forwardA firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period. If Mult. 60 lot sizing is used, the planned order releases is Group of answer choices 60 in period 2 and 80 in period 3 120 in period 2 and 60 in period 3 80 in period 1 and 0 in period 3 0 in period 1 and 40 in period 3arrow_forwardElectro Fans has just received an order for one thousand 20˝ fans due in week 7. Each fan consists of a housing assembly, two grills and a fan assembly. The housing assembly consists of a frame, two supports and a handle. The following table gives lead times, on-hand inventory, and scheduled receipts. Table 1.1: Lead time and quantity on hand Item Lead Time Qty on hand Lot size# Scheduled receipt 20˝ Fan Housing Frame Supports (2) Handle Grills (2) Fan Assembly 1 1 2 1 1 2 3 80 90 - 50 400 200* 150 - - - 100 400 450 - 50 fan assembly in week 2 * In week 3 it was found that 50% of the on hand inventory of the grills was damaged. # Items without any lot size given should be considered as lot-for-lot. (i) Construct a product structure. (ii) Construct a time-phased product structure. (iii) Prepare a net requirement plan.arrow_forward
- State the types of data that would be carried in the bill-of-materials i le and the inventoryrecord file.arrow_forwardHow does Material Requirement Planning help organizations balance inventory carrying costs with the risk of stockouts and production delays?arrow_forwardMr. Dan Stockman is the procurement manager for Slicker Image (SI), an upscale retailer of novelty products. It is mid-August, and Mr. Stockman is wondering how many units of a new multi-function smart bracelet to order for the upcoming holiday season (November and December). The Malaysian manufacturer of this item, TechToys, requires orders to be placed in late August for delivery in late October, in time for holiday sales. Based on past experience with similar products, Mr. Stockman believes that the holiday demand (Nov-Dec) for the bracelet is Normally distributed with a mean of 3,000 units and standard deviation of 900. TechToys sells the item to SI at a unit price of $ 145 per unit, and SI has decided to set the retail price at $ 200 during the regular selling season (Nov-Dec). At the end of December, SI will mark down the price by 50% (i.e., sell the item for $ 100) to sell off any left-over items. TechToys incurs a cost of $ 105 per unit to manufacture this bracelet. For…arrow_forward
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