Concept explainers
a
Interpretation:
A material requirement plan for next 7 weeks for item B and C.
Concept Introduction:
The lot sizing rule consists of lot-for-lot, Fixed order quantity and Fixed period quantity. Out of all lot sizing rule, lot-for-lot rule results in least inventory because the order is planned and released according to net requirement of that particular week. A fixed order quantity is an inventory system in which a firm orders a fixed lot size i.e. the order quantity remains the same when ordered every time.
b
Interpretation:
Any action notice to be generated.
Concept Introduction:
The lot sizing rule consists of lot-for-lot, Fixed order quantity and Fixed period quantity. Out of all lot sizing rule, lot-for-lot rule results in least inventory because the order is planned and released according to net requirement of that particular week. A fixed order quantity is an inventory system in which a firm orders a fixed lot size i.e. the order quantity remains the same when ordered every time.
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Check out a sample textbook solution- As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 2 springs, and 4 clamps. The base is assembled from 1 clamp and 2 housings. Each clamp has 1 handle and 1 casting. Each housing has 2 bearings and 1 shaft. There is no inventory on hand. A. Design a product structure noting the quantities for each item and show the low-level coding. B. Determine the gross quantities needed of each item if you are to assemble 50 brackets. C. Compute the net quantities if there are 25 of the base and 100 of the clamp in stock.arrow_forwardGiven the product structure, master productionschedule, and inventory status in Figure 14.13, and assuming therequirements for each BOM item is I:a) develop a gross requirements plan for Item C;b) develop a net requirements plan for Item C.arrow_forwardProduct A is made from components B and C. Item B, inturn, is made from D and E. Item C also is an intermediateitem, made from F and H. Finally, intermediate item E ismade from H and G. Note that item H has two parents. Thefollowing are item lead times:a. What lead time (in weeks) is needed to respond to a cus-tomer order for product A, assuming no existing invento-ries or scheduled receipts?b. What is the customer response time if all purchased items(i.e., D, F, G, and H) are in inventory?c. If you are allowed to keep just one purchased item instock, which one would you choose?arrow_forward
- Product A is made from components B and C. Item B, inturn, is made from D and E. Item C also is an intermediateitem, made from F and H. Finally, intermediate item E ismade from H and G. Note that item H has two parents. Thefollowing are item lead times: a. What lead time (in weeks) is needed to respond to a cus-tomer order for product A, assuming no existing invento-ries or scheduled receipts?b. What is the customer response time if all purchased items(i.e., D, F, G, and H) are in inventory?c. If you are allowed to keep just one purchased item instock, which one would you choose?arrow_forwardAs the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 1 spring, and 3 clamps. The base is assembled from 2 clamp and 1 housing. Each clamp has 1 handle and 1 casting. Each housing has 2 bearing and 2 shaft. There is no inventory on hand. Part 2 a) Design a product structure noting the quantities for each item and show the low-level coding. Match each number in the structure below with the corresponding item. Number Item I Bracket II Spring Subscript left parenthesis 1 right parenthesis III Clamp Subscript left parenthesis 3 right parenthesis IV Bearing Subscript left parenthesis 2 rightarrow_forwardAs the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, two springs, and four clamps. The base isassembled from one clamp and two housings. Each clamp has one handle and one casting. Each housing has two bearings and one shaft. There is no inventory on hand.a) Design a product structure noting the quantities for each item and show the low-level coding.b) Determine the gross quantities needed of each item if you are to assemble 50 brackets.c) Compute the net quantities needed if there are 25 of the base and 100 of the clamp in stock.arrow_forward
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- As the production planner for Xiangling HuProducts, Inc., you have been given a bill of material fora bracket that is made up of a base, two springs, and fourclamps. The base is assembled from one clamp and twohousings. Each clamp has one handle and one casting. Eachhousing has two bearings and one shaft. There is no inventoryon hand. a) Design a product structure noting the quantities for eachitem and show the low-level coding.b) Determine the gross quantities needed of each item if youare to assemble 50 brackets.c) Compute the net quantities needed if there are 25 of thebase and 100 of the clamp in stock.arrow_forwardFigure shows the BOMs for two products, A and B. Table 1 shows the MPS quantity start date for each one. Table 2 contains data from inventory records for items C, D, and E. There are no safety stock requirements for any of the items.a. Determine the material requirements plan for items C, D, and E for the next 8 weeks.b. What specific managerial actions are required in week 1?c. Suppose that a very important customer places an emergency order for a quantity of product A. To satisfy this order, a new MPS of 200 units of product A is now required in week 5. Determine the changes to the material requirements plan if this order is accepted and note any problems that you detect. MPS Quantity Start Dates Date Product 1 2 3 4 5 6 7 8 A 125 95 150 130 B 80 70 Inventory Record Data Item Data Category C D E Lot-sizing rule L4L POQ 1P = 32 FOQ = 800 Lead time 3 weeks 2 weeks 1 weeks Scheduled receipts 200 (week 2) None 800 (week 1) Beginning…arrow_forwardWhat are the net requirements of each item in the MPS? Item Net Requirements X A B C D E F Garrow_forward
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