Case summary:
Person M got the small bike factory running. It assembles two models including arrows and darts. Person M believes that he can increase the productivity and reduce the cost if he solves the current problems associated with inventory and
In the initial stages, he ordered enough parts for four months of production, which reduced the workspace. It became a solid mess. Person M needs to assemble 15 arrows and 10 darts each week to have them ready at the start of week 4 through 8. Scheduled receipts are 20 arrows and 18 Ws in period 1 and 20 darts and 15Fs in period 2.
The given tree diagram is as follows:
Additional information is given is as follows:
Item | Lead-time (weeks) | On hand | Lot size |
Arrow | 2 | 5 | Lot-for-lot |
Dart | 2 | 2 | Lot-for-lot |
X | 1 | 5 | Multiplies of 25 |
W | 2* | 2 | Multiplies of 12 |
F | 1 | 10 | Multiplies of 30 |
K | 1 | 3 | Lot-for-lot |
Q | 1 | 15 | Multiplies of 30 |
M | 1 | 0 | Lot-for-lot |
* refers to the fact that lead-time is 3 weeks if the order is 36 units or more for Item W.
To develop: A material requirement plan for the product.
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