Q4: M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting manufacturer supplies the wheels to the M/S XYZ Company through a purchase contract. The sub-contracting company initially purchases aluminium billets as raw material and manufactures wheels by forming each billet into wheel rims. Both the rims (front and rear) are assembled with spokes, front and rear hubs. Front wheels comprise a front rim, 24 spokes and a front hub. Rear wheels comprise a rear rim, 24 spokes and a rear hub. (1) Draw the Bill of Material (BOM) tree for the front and rear wheels. (ii) Referring to table 4(i) and 4(i), complete the Material Requirements Planning (MRP) and determine when to Purchase Orders placed for the spokes. Table 4 (i) Week 12 13 14 15 16 17 Demand for the bikes 80 70 90 120 100 85 Demand of Front Rim 50 40 30 125 The demand of Rear Rim 70 60 80 Table 4 (ii) Part/Component Lead Time Stock on Hand Batch Size Safety Stock Bike 1 160 100 Front wheel 1 110 120 100 Rear wheel 1 80 150 125 Front Rim 2 80 150 100 Rear Rim 200 100 100 Front Hub 1 90 150 50 Rear Hub 1 130 100 50 Spokes 1 9800 3,000 1,100

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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Q4: M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting manufacturer supplies the wheels to the M/S XYZ Company through a
purchase contract. The sub-contracting company initially purchases aluminium billets as raw material and manufactures wheels by forming each billet into wheel rims. Both the rims (front
and rear) are assembled with spokes, front and rear hubs. Front wheels comprise a front rim, 24 spokes and a front hub. Rear wheels comprise a rear rim, 24 spokes and a rear hub.
(i) Draw the Bill of Material (BOM) tree for the front and rear wheels.
(ii) Referring to table 4(i) and 4(ii), complete the Material Requirements Planning (MRP) and determine when to Purchase Orders placed for the spokes.
Table 4 (i)
Week
12
13
14
15
16
17
Demand for the bikes
80
70
90
120
100
85
Demand of Front Rim
50
40
30
125
The demand of Rear Rim
70
60
80
Table 4 (ii)
Part/Component
Lead Time
Stock on Hand
Batch Size
Safety Stock
Bike
1
160
100
Front wheel
1
110
120
100
Rear wheel
1
80
150
125
Front Rim
80
150
100
Rear Rim
200
100
100
Front Hub
1
90
150
50
Rear Hub
1
130
100
50
Spokes
1
9800
3,000
1,100
Transcribed Image Text:Q4: M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting manufacturer supplies the wheels to the M/S XYZ Company through a purchase contract. The sub-contracting company initially purchases aluminium billets as raw material and manufactures wheels by forming each billet into wheel rims. Both the rims (front and rear) are assembled with spokes, front and rear hubs. Front wheels comprise a front rim, 24 spokes and a front hub. Rear wheels comprise a rear rim, 24 spokes and a rear hub. (i) Draw the Bill of Material (BOM) tree for the front and rear wheels. (ii) Referring to table 4(i) and 4(ii), complete the Material Requirements Planning (MRP) and determine when to Purchase Orders placed for the spokes. Table 4 (i) Week 12 13 14 15 16 17 Demand for the bikes 80 70 90 120 100 85 Demand of Front Rim 50 40 30 125 The demand of Rear Rim 70 60 80 Table 4 (ii) Part/Component Lead Time Stock on Hand Batch Size Safety Stock Bike 1 160 100 Front wheel 1 110 120 100 Rear wheel 1 80 150 125 Front Rim 80 150 100 Rear Rim 200 100 100 Front Hub 1 90 150 50 Rear Hub 1 130 100 50 Spokes 1 9800 3,000 1,100
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