Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 8.5, Problem 31P
Summary Introduction
Interpretation:MRP lot-sizing calculations consider safety stock also. Explain why it should or should not be done. Comment on the statement that “A
Concept Introduction:MRP calculates the lot-sizes on the basis of pre-estimated demand, lead time etc. Variations are all around us in the world. Safety stock is a considered ‘insurance’ against normal variations. This is built in all calculations except the EOQ calculations.
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The MRP gross requirements for Item A are shown here for the next 10 weeks. Lead timefor A is three weeks and setup cost is $10. There is a carrying cost of $0.01 per unit perweek. Beginning inventory is 90 units.Week1 2 3 4 5 6 7 8 9 10Gross requirements 30 50 10 20 70 80 20 60 200 50Use the least total cost or the least unit cost lot-sizing method to determine when and forwhat quantity the i rst order should be released.
In 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?
Explain how much safety stock should be carried in a MRP system ?
Chapter 8 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 8.1 - Prob. 1PCh. 8.1 - Prob. 2PCh. 8.1 - Prob. 3PCh. 8.1 - Prob. 4PCh. 8.1 - Prob. 5PCh. 8.1 - Prob. 6PCh. 8.1 - Prob. 7PCh. 8.1 - Prob. 8PCh. 8.1 - Prob. 9PCh. 8.2 - Prob. 10P
Ch. 8.2 - Prob. 11PCh. 8.2 - Prob. 12PCh. 8.2 - Prob. 13PCh. 8.2 - Prob. 14PCh. 8.2 - Prob. 15PCh. 8.2 - Prob. 16PCh. 8.2 - Prob. 17PCh. 8.2 - Prob. 18PCh. 8.2 - Prob. 19PCh. 8.2 - Prob. 20PCh. 8.2 - Prob. 21PCh. 8.2 - Prob. 22PCh. 8.3 - Prob. 23PCh. 8.3 - Prob. 24PCh. 8.3 - Prob. 25PCh. 8.4 - Prob. 26PCh. 8.4 - Prob. 27PCh. 8.4 - Prob. 28PCh. 8.4 - Prob. 29PCh. 8.5 - Prob. 30PCh. 8.5 - Prob. 31PCh. 8.5 - Prob. 32PCh. 8.5 - Prob. 33PCh. 8.5 - Prob. 34PCh. 8.6 - Prob. 35PCh. 8.6 - Prob. 36PCh. 8.6 - Prob. 37PCh. 8.6 - Prob. 38PCh. 8.6 - Prob. 39PCh. 8.6 - Prob. 40PCh. 8 - Prob. 41APCh. 8 - Prob. 42APCh. 8 - Prob. 43APCh. 8 - Prob. 44APCh. 8 - Prob. 45APCh. 8 - Prob. 46APCh. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51AP
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- If you cannot provide a bill of material (BOM) as an input file, you cannot run a material requirem planning (MRP) system. OTrue O Falsearrow_forwardFigure 11.38 shows a partially completed inventory recordfor the real wheel subassembly. Gross requirements, sched-uled receipts, lead time, and current on-hand inventory areshown.a. Complete the last three rows of the record for an FOQ of200 units. b. Complete the last three rows of the record by using anFOQ of 100 units.c. Complete the last three rows of the record by using theL4L rule.arrow_forwardDescribe what is secondary report in MRP system output?arrow_forward
- A(n) ______ MRP system provides information to thecapacity plan, to the master production schedule, andultimately to the production plan.a) dynamicb) closed-loopc) continuousd) retrospectivee) introspectivearrow_forward1. 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…arrow_forwardRefer again to Problems( Using the information in Problem(The demand for subassembly Sis 100 units in week 7.Each unit ofS requires 1 unit ofT and 2 units ofU. Each unit ofT requires I unit ofY, 2 units ofW, and 1 unit of X. Finally, eachunit of U requires 2 units of Y and 3 units of Z. One firm manufacturesall items. It takes 2 weeks to make S, 1 week to make T, 2 weeks to make U, 2 weeks to make Y, 3 weeks to make W,I week to make X, 2 weeks to make Y, and I week to make Z.a) Construct a product structure. Identify all levels, parents, and components.b) Prepare a time-phased product structure. ), construct agross material requirements plan. ). In addition to100 units of S, there is also a demand for 20 units of U, which isa component of S. The 20 units of U are…arrow_forward
- Describe what is primary report in MRP system output?arrow_forwardDescribe what is the primary report in Material Requirements Planning ( MRP )system output ?arrow_forwardDescribe a production environment in which MRP wouldbe useful. Describe a production environment in whichMRP would not be useful.arrow_forward
- Complete the following MRP table below, note the following: Beginning inventory is 35 Order lot size is 40 Lead time is one week week 1 2 3 4 5 6 7 8 9 10 Gross requirement 35 30 40 0 10 40 30 0 30 55 Schedule receipts Projected on hand (35) Net requirement Planned order receipts Planned order releasesarrow_forwardAs an approach to inventory management, how does MRP differ from the approach taken, dealing witheconomic order quantities (EOQs)?arrow_forwardCompletely fill in the MRP matrices for items J, K, and L. Do not complete the matrix for M and be careful to watch lot size restrictions. Item J LLC 0 Lot Size L4L LT 3 1 2 3 4 5 6 7 8 9 Gross Requirements Scheduled Receipts Projected on Hand 100 Net Requirements Planned Order Receipts Planned Order Releases Item K LLC _ Lot Size Mult 200 LT 2 1 2 3 4 5 6 7 8 9 Gross Requirements Scheduled Receipts Projected on Hand 110 Net Requirements Planned…arrow_forward
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