Class Example - MRP

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School

Thompson Rivers University *

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3320

Subject

Industrial Engineering

Date

Feb 20, 2024

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docx

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3

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MRP – Class Example A furniture-maker has received an order for 100 units of its kitchen table to be delivered at the beginning of Dec 3. The table consists of 1 top & 4 legs, made from purchased lumber (2” by 6” by 6’). Each top is made from 1.5 units of lumber, and each leg is made from 1/6 unit of the lumber. Tops and legs can be made independently in two different workstations, and manufacturing time for 1 top is expected to be 12 minutes and for 1 leg 2 minutes. All 100 tops & 400 legs are made before any table are assembled, and final assembly of 1 table is expected to take 4 minutes. The shop works 8 hours a day, Mon-Fri. Currently, they have 20 units of lumber in stock, and purchase lead time for lumber is 1 workday. Each of the 3 workstations are operated by a different worker. (a) Calculate the manufacturing lead time for each operation. (b) Perform material requirements planning for this order. Assume lot-for-lot ordering. Page 1 of 3
Production Schedule Day 26-Nov 27-Nov 28-Nov 29-Nov 2-Dec 3-Dec for End item: Quantity           100  Table   Gross requirements 100 Quantity = Scheduled receipts per Parent = Projected on hand On Hand = 0 Net requirements Lot Size = L4L Planned-order receipts LT = 1 Planned-order releases Top Gross requirements Quantity = 1 Scheduled receipts per Parent = Table Projected on hand On Hand = 0 Net requirements Lot Size = L4L Planned-order receipts LT = 3 Planned-order releases 26-Nov 27-Nov 28-Nov 29-Nov 2-Dec 3-Dec  Leg Gross requirements Quantity = 4 Scheduled receipts per Parent = Table Projected on hand On Hand = 0 Net requirements Lot Size = L4L Planned-order receipts LT = 2 Planned-order releases     Lumber   Gross requirements     Quantity = 1.5, 1/6 Scheduled receipts     per Parent = Top, Leg Projected on hand     On Hand = 20 Net requirements     Lot Size = L4L Planned-order receipts     LT = 1 Planned-order releases     What action should be taken now? Page 2 of 3
(c) How would your answer for lumber change (i) if the safety stock for lumber is 20 units? (ii) if lumber is purchased in batch size of 250 units? (no SS) (iii) if 250 units have been ordered and are scheduled to be received on Nov 27? C(i) 26-Nov 27-Nov 28-Nov 29-Nov 2-Dec 3-Dec Lumber SS=20 Gross requirements 150 67     Quantity =   Scheduled receipts     per Parent =   Projected on hand 0 0 0     On Hand = 20  Net requirements 150 67     Lot Size =  L4L Planned-order receipts     LT = Planned-order releases 150 67     C(ii) Lumber   Gross requirements 150 67     Quantity =   Scheduled receipts     per Parent =   Projected on hand 20 20 120 53     On Hand = 20  Net requirements 130 0     Lot Size = 250  Planned-order receipts 250     LT = Planned-order releases 250     C(iii) lumber   Gross requirements 150 67     Quantity =   Scheduled receipts 250     per Parent =   Projected on hand 20 270 120 53     On Hand = 20 Net requirements 0 0     Lot Size = 250  Planned-order receipts     LT = Planned-order releases             Page 3 of 3
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