OPERATIONS AND SUPPLY CHAIN MANAGEMENT
9th Edition
ISBN: 9781119448037
Author: Russell
Publisher: WILEY
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Chapter 15, Problem 15P
Alpha Corp. (a spinoff of Alpha Beta) makes Product X, which is composed of two Part Ys. Complete the following MRP matrices for X and Y, and construct a planned order report. When are orders placed for items X and Y, and what are the size of those orders?
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A 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 3
1. Which of the following statements about lot-sizing rules for MRP is true?
a) The periodic order quantity (POQ) rule generates a higher level of average inventory since it creates inventory remnants.
b) FOQ is a dynamic lot-sizing rule which reduces the amount of inventory, by doing a better job of matching the order quantity to the projected on-hand inventory quantity.
c) The lot for lot rule minimizes inventory investment but maximizes the number of orders placed.
d) In general, static lot-sizing rules introduce greater instability into the production process
2. Which one of the following is a reason to have small inventories?
a) To improve customer service
b) To reduce ordering costs
c) To reduce equipment setup costs
d) To reduce interest expense or opportunity costs
3. Which one of the following is the most likely example of dependent demand for an MRP controlled item?
a) Demand for spare parts
b) Demand directly from customers
c) Demand from quality control department for…
Assume that you are the manager of Assembly, Inc. You have just received an order for 40 units ofan industrial robot, which is to be delivered at the start of week 7 of your schedule. Using the following information, determine how many units of subassembly G to order and the timing of thoseorders, given that subassembly G must be ordered in multiples of 80 units and all other componentsare ordered lot-for-lot. Assume that the components are used only for this particular robot.Item Lead Time (weeks) On Hand ComponentsRobot 2 10 B, G, C(3)B 1 5 E, FC 1 20 G(2), HE 2 4 —F 3 8 —G 2 15 —H 1 10 —
Chapter 15 Solutions
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
Ch. 15 - Describe a production environment in which MRP...Ch. 15 - Explain with an example the difference between...Ch. 15 - What are the objectives, inputs, and outputs of an...Ch. 15 - How is a master production schedule created, and...Ch. 15 - What is the purpose of phantom bills, K-bills, and...Ch. 15 - What type of information is included in the item...Ch. 15 - Describe cycle counting. How does it improve...Ch. 15 - Describe the MRP process, including netting,...Ch. 15 - What are the inputs to capacity requirements...Ch. 15 - Discuss several assumptions of MRP and how they...
Ch. 15 - Explain how MRP could be applied to (a) the...Ch. 15 - How does MRP differ from ERP? Find a description...Ch. 15 - What are the capabilities of customer relationship...Ch. 15 - What ate the capabilities of supply chain...Ch. 15 - What is PLM? How does it relate to other business...Ch. 15 - Describe how the ERP systems from two different...Ch. 15 - Discuss the scope of ERP and difficulties in...Ch. 15 - Referring to the product structure diagram for...Ch. 15 - Construct a multilevel bill of material for...Ch. 15 - The classic One-Step step stool shown in the next...Ch. 15 - Draw a product structure diagram from the...Ch. 15 - Product A is assembled from two units of S1 and...Ch. 15 - The popular Racer Scooter comes in a variety of...Ch. 15 - Draw a product structure diagram from the bill of...Ch. 15 - Prob. 8PCh. 15 - Use the product structure diagram for item X shown...Ch. 15 - Kids World sells outdoor play equipment for...Ch. 15 - Complete the following MRP matrix for item A:Ch. 15 - Complete the following MRP matrix for Item X....Ch. 15 - Complete the MRP matrix below, then answer the...Ch. 15 - Alpha Corp. (a spinoff of Alpha Beta) makes...Ch. 15 - Just ERP Just Sofas (JS) had begun the year full...Ch. 15 - Just ERP Just Sofas (JS) had begun the year full...Ch. 15 - Just ERP Just Sofas (JS) had begun the year full...Ch. 15 - Just ERP Just Sofas (JS) had begun the year full...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- One unit of A is composed of two units of B and three units of C. Each B is composed of one unit of F. C is made of one unit of D, one unit of E, and two units of F. Items A, B, C, and D have 20, 50, 60, and 25 units of on-hand inventory, respectively. Items A, B, and C use lot-for-lot (L4L) as their lot-sizing technique, while D, E, and F require multiples of 50, 100, and 100, respectively, to be purchased. B has scheduled receipts of 30 units inperiod 1. No other scheduled receipts exist. Lead times are one period for items A, B, and D, and two periods for items C, E, and F. Gross requirements for A are 20 units in period 1, 20 units in period 2, 60 units in period 6, and 50 units in period 8. Find the planned order releases for all items.arrow_forwardI 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_forwardConsider the product structure diagram given. Assume that the MPS for the end item for weeks 10 through 17 isWeek 10 11 12 13 14 15 16 17Net requirements 100 100 40 40 100 200 200 200Assume that lot-for-lot scheduling is used throughout. Also assume that there is no entering inventory in period 10 and no scheduled receipts. For the example given above, assume that the setup cost for both components A and B is $100 and that the holding costs are respectively $0.15 and $0.25 per component per week. Using the Silver–Meal algorithm, determine the planned order releases for both components A and B and the resulting gross requirements schedules for components C, D, and E.arrow_forward
- It is Monday morning, and you have just arrived at work. Complete the followingMRP record as it would appear Monday morning. Lead time is 2 weeks, and the lotsize is 100. During the week, the following events occur. Enter them in the MRP record.a. The planned order for 100 in week 1 is released.b. Thirty of the scheduled receipts for week 1 are scrapped.c. An order for 30 is received for delivery in week 3.d. An order for 50 is received for delivery in week 6.e. The gross requirements of 70 in week 1 are issued.arrow_forwardIn a MRP problem, A is a MPS item. Every A requires 2 B’s and 3 C’s. Every B requires 5 C’s. All lead times are two periods. All initial inventory values are 0. Use lot-for-lot method for order quantities for all items. What is the low level code (LLC) for B and C?arrow_forwardExplain block stacking and why it is important to the warehouse in full detailarrow_forward
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- One unit of A is made of three units of B, one unit of C, and two units of D. B is composed of two units of E and one unit of D. C is made of one unit of B and two units of E. E is made of one unit of F. Items B, C, E, and F have one-week lead times; A and D have lead times of two weeks. Assume that lot-for-lot (L4L) lot sizing is used for Items A, B, and F; lots of size 55, 55, and 200 are used for Items C, D, and E, respectively. Items C, E, and F have on-hand (beginning) inventories of 10, 50, and 160, respectively; all other items have zero beginning inventory. We are scheduled to receive 10 units of A in Week 2, 60 units of E in Week 1, and also 50 units of F in Week 1. There are no other scheduled receipts. If 32 units of A are required in Week 8, use the low-level-coded bill of materials to find the necessary planned order releases for all componentsarrow_forwardOne unit of A is made of three units of B, one unit of C, and two units of D. B is composed of two units of E and one unit of D. C is made of one unit of B and two units of E. E is made of one unit of F. Items B, C, E, and F have one-week lead times; A and D have lead times of two weeks. Assume that lot-for-lot (L4L) lot sizing is used for items A, B, and F; lots of size 50, 50, and 200 are used for Items C, D, and E, respectively. Items C, E, and F have on-hand (beginning) inventories of 10, 50, and 150, respectively; all other items have zero beginning inventory. We are scheduled to receive 10 units of A in week 2, 50 units of E in week 1, and also 50 units of F in week 1. There are no other scheduled receipts. If 30 units ofA are required in week 8, use the low-level-coded bill-of-materials to find the necessaryplanned-order releases for all components.arrow_forwardHeather Adams, production manager for a Colorado exercise equipment manufacturer, needs to schedule an order for 50 UltimaSteppers, which are to be shipped in week 8. Assume lot-for- lot ordering. Below is information about the steppers and the quantity required for each parent. Item Lead Time On Hand Inventory Components Stepper 2 20 A(1), B(3), C(2) A 1 10 D(1), F(2) B 2 30 E(1), F(3) C 3 10 D(2), E(3) D 1 15 E 2 5 F 2 20 Develop a product structure diagram for Develop a net material requirements plan forarrow_forward
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