ABC Inc produces a product known as product A that is made up of a number of different components. Item D is made of two units of item B and two units of item C. Item B is made of one unit of item E and two units of item F. Item C is made up of one unit of item F, while item E is made up of three units of item F. The final product A is made of three units of item B, two units of item D, and two units of item E. The on- hand stock for items B, C, D, and E are 30, 40, 10, and 25, respectively. ABC Inc has a scheduled receipt from its supplier for item F of 50 units in Week 5. The production lead time for items A, E, and F is one week; for items C and D the lead time is two weeks, and for item B the lead time is three weeks. Lot-for-lot production quantity is applied for items C, while the lot sizes for producing items A, B, D, E, and F are the multiple of 25, 25, 50, 50, and 125 units respectively. The customer places an order of 20 units of product A to be delivered in Week 15. Create the complete MRP schedule for the above order to determine the planned order releases for all items without any on-hand inventory and scheduled receipt for all items. Will ABC inc be able to fulfill the customer's order?
ABC Inc produces a product known as product A that is made up of a number of different components. Item D is made of two units of item B and two units of item C. Item B is made of one unit of item E and two units of item F. Item C is made up of one unit of item F, while item E is made up of three units of item F. The final product A is made of three units of item B, two units of item D, and two units of item E. The on- hand stock for items B, C, D, and E are 30, 40, 10, and 25, respectively. ABC Inc has a scheduled receipt from its supplier for item F of 50 units in Week 5. The production lead time for items A, E, and F is one week; for items C and D the lead time is two weeks, and for item B the lead time is three weeks. Lot-for-lot production quantity is applied for items C, while the lot sizes for producing items A, B, D, E, and F are the multiple of 25, 25, 50, 50, and 125 units respectively. The customer places an order of 20 units of product A to be delivered in Week 15. Create the complete MRP schedule for the above order to determine the planned order releases for all items without any on-hand inventory and scheduled receipt for all items. Will ABC inc be able to fulfill the customer's order?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Transcribed Image Text:ABC Inc produces a product known as
product A that is made up of a number of
different components. Item D is made of
two units of item B and two units of item C.
Item B is made of one unit of item E and
two units of item F. Item C is made up of
one unit of item F, while item E is made up
of three units of item F. The final product A
is made of three units of item B, two units of
item D, and two units of item E. The on-
hand stock for items B, C, D, and E are 30,
40, 10, and 25, respectively. ABC Inc has a
scheduled receipt from its supplier for item
F of 50 units in Week 5. The production lead
time for items A, E, and F is one week; for
items C and D the lead time is two weeks,
and for item B the lead time is three weeks.
Lot-for-lot production quantity is applied for
items C, while the lot sizes for producing
items A, B, D, E, and F are the multiple of 25,
25, 50, 50, and 125 units respectively. The
customer places an order of 20 units of
product A to be delivered in Week 15.
Create the complete MRP schedule for the
above order to determine the planned order
releases for all items without any on-hand
inventory and scheduled receipt for all
items. Will ABC inc be able to fulfill the
customer's order?
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