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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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- Given the following MRP matrix for Item D: The planned order release for period 3 isarrow_forwardDevelop a material requirements plan for component H. Lead times for the end item and each component except B are one week. The lead time for B is three weeks. Sixty units of A are needed at the startof week 8. There are currently 15 units of B on hand and 130 of E on hand, and 50 units of H are inproduction and will be completed by the start of week 2. Lot-for-lot ordering will be used for all items.arrow_forwardGiven the following MRP matrix for Item D: The planned order receipt for period 6 isarrow_forward
- A partially completed inventory record for the motor subassembly is shown in Figure.a. Complete the last three rows of the record by using the L4L rule.b. Complete the last three rows of the record by using the POQ rule with P = 2.c. Complete the last three rows of the record by using the POQ rule with P = 2.d. If it costs the company $1 to hold a unit in inventory from one week to the next, and the cost to release an order is $50, which of the lot sizing rules used above will provide the lowest inventory holding + order release cost?arrow_forwardExplain Four (4) main drawbacks of a traditional Material Requirements Planning (MRP) scheduling system. In your explanation include how these drawbacks improved with the development of the MRP II system?arrow_forwardA table is assembled using three components, as shown in the accompanying product structure tree.The company that makes the table wants to ship 100 units at the beginning of day 4, 150 units atthe beginning of day 5, and 200 units at the beginning of day 7. Receipts of 100 wood sections arescheduled at the beginning of day 2. There are 120 legs on hand. There are 60 braces on hand. Leadtimes (in days) for all items are shown in the following table. Prepare a material requirements planusing lot-for-lot ordering.arrow_forward
- One unit of Part C is used in item A and in item B. Currently, we have 10 As, 20 Bs, and 100 Cs in inventory. We want to ship 60 As and 70 Bs. How many additional Cs do we need to purchase?arrow_forwarda. One hundred twenty units of end item Z are needed at the beginning of week 7. Prepare a material requirements plan for component C. Take into account that on hand there are 40 units of Z,70 units of A, 100 units of B, and 30 units of C. Also, there is a scheduled receipt of 20 units ofcomponent C in week 4. Lead times are two weeks for Z and B, and one week for the other components. Lot-for-lot ordering will be used for all items b. Ninety-five units of end item E are needed at the beginning of week 7. Prepare a material requirements plan for component D. Take into account that 5 units of E are currently on hand, as well as50 units of B, 100 units of C, and 80 units of D. Also, 30 units of C have been outsourced and areexpected to arrive in week 4. Lead times are two weeks for E and C, and one week for the othercomponents. Assume lot-for-lot ordering except for D, where multiples of 40 must be used.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_forwardA firm that produces electric golf carts has just received an order for 200 carts, which must be ready for delivery at the start of week 8. Information concerning the product structure, lead times, and quantities on hand is shown in the following table. Use this information to do each of the following: a. Develop a material requirements plan that will provide 200 golf carts by week 8, assuming lot-for-lot ordering. (Excel)arrow_forwardThe bid process requires a set of functional criteria that are well-defined and documented. Even if a bid isn't required, explain why this is useful when choosing an ERP system.arrow_forward
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