Below is the bill of material for a skate board. Indented BOM-Skate Board Plannin Part Description Board Level 1 Wheels 1 Axles

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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can you explain how to do this? what do I need to keep an eye on?

Below is the bill of material for a skate board.
Indented BOM-Skate Board
Part Description
Board
Level
1
Planning Factor
1
1
Wheels
Axles
Hardware kit
Sticker set
1
1
1
The master production schedule for Skate Boards for the next 6 weeks is shown below (and the
MRP planned order releases for Skate Boards have been completed for you.)
Skate Boards-Level 0
Gross Requirements
Projected on-hand inventory=150
Net Requirements
Planned Order Releases
Q=100; LT=1; SS=0
Week 5
Week 6
Week 1
100
Week 2
Week 3 Week 4
150
75
200
200
Fill in the gross requirements based on the BOM and the planned order releases for Skate Boards.
Next calculate the projected on-hand inventory and the net requirements for axles. Finally, based on
the order policy and lead time for axles, determine the Planned Order Releases for axles.
Below is the MRP report for Axles.
Axles-Level 1
Gross Requirements
Projected on-hand inventory=325
Net Requirements
Planned Order Releases
Q=100; LT=1: SS=0
Week 1 Week 2 Week 3
Week 4
Week 5
Week 6
Transcribed Image Text:Below is the bill of material for a skate board. Indented BOM-Skate Board Part Description Board Level 1 Planning Factor 1 1 Wheels Axles Hardware kit Sticker set 1 1 1 The master production schedule for Skate Boards for the next 6 weeks is shown below (and the MRP planned order releases for Skate Boards have been completed for you.) Skate Boards-Level 0 Gross Requirements Projected on-hand inventory=150 Net Requirements Planned Order Releases Q=100; LT=1; SS=0 Week 5 Week 6 Week 1 100 Week 2 Week 3 Week 4 150 75 200 200 Fill in the gross requirements based on the BOM and the planned order releases for Skate Boards. Next calculate the projected on-hand inventory and the net requirements for axles. Finally, based on the order policy and lead time for axles, determine the Planned Order Releases for axles. Below is the MRP report for Axles. Axles-Level 1 Gross Requirements Projected on-hand inventory=325 Net Requirements Planned Order Releases Q=100; LT=1: SS=0 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6
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