Show the MRP using the
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question

Transcribed Image Text:Answer all the following questions:
1- A company is manufacturing product X. To produce one unit of product X, the company has to
purchase one unit of component A & two units of component B. Show the MRP using the
following information and calculate the total costs:
Weeks
1
2
3
5
6.
Demand for
20
30
87
99
100
570
product X
Product X
Component
Component
A
B
Production
1 week
Lead Time
1 week
2 weeks
Run Time
50 units
Min
Min
60 units
60 units
Production
Purchase
Quantity
Quantity
Inventory
on Hand
90 units
200 units
Inventory
on Hand
150 units
Safety Stock
Safety
20 units
Stock
Scheduled
Scheduled
20 units in
Receipts
Receipts
week 1
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