Concept explainers
a
Interpretation: Number of level in the production structure:
Concept Introduction: Material Requirement Planning (MRP) is the detailed planning of all components required and its quantity for the end product. It is usually prepared for a week and keeps on changing according to the product.
b
Interpretation: Quantity of each item and time to order.
Concept Introduction: Material Requirement Planning (MRP) is the detailed planning of all components required and its quantity for the end product. It is usually prepared for a week and keeps on changing according to the product.
c
Interpretation:
Quantity of the highest ending inventory:
Concept Introduction: Material Requirement Planning (MRP) is the detailed planning of all components required and its quantity for the end product. It is usually prepared for a week and keeps on changing according to the product.
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Practical Operations Management
- The following table lists the components needed to assemble an end item, the manufacturing or purchase lead times (in weeks) for typical lot sizes, amount on hand, and the direct components of each item and, in brackets, the number of each component for each parent. Item Lead Time Amount onHand DirectComponents End item 1 - L(2), C(1), K(3) L 2 14 B(2), J(3) C 3 30 G(2), B(2) K 1 25 H(4), B(2) B 4 15 J 2 10 G 4 5 H 2 - a. Not available in Connect.b. If 46 units of the end item are to be assembled, how many additional units of B are needed? (You don’t need to develop the MRP tables.)Additional units ____ c. An order for 46 units of the end item is scheduled to be shipped at the start of week 11. What is the latest week that the components of the order can be started and the order still be ready to ship on time? (You don’t need to develop the MRP tables.)The latest week ____arrow_forwardFigure shows a partially completed MPS record for 2 inch pneumatic control valves. Suppose that you receive the following orders at right for the valves (shown in the order of their arrival). As they arrive, you must decide whether to accept or reject them. Which orders would you accept for shipment?Order Amount (Units) Week Requested1 15 22 30 53 25 34 75 7arrow_forwardDevelop a material requirements plan for component H. Lead times for the end item and each component except B are one week. The lead time for B is three weeks. Sixty units of A are needed at the startof week 8. There are currently 15 units of B on hand and 130 of E on hand, and 50 units of H are inproduction and will be completed by the start of week 2. Lot-for-lot ordering will be used for all items.arrow_forward
- Explain the difference between a materials requirement planning (MRP) and Master Production Schedule. Provide examples how each are applied in the supply chain.arrow_forwardThe following table lists the components needed to assemble an end item, the manufacturing or purchase lead times (in weeks) for typical lot sizes, amount on hand, and the direct components of each item and, in brackets, the number of each component for each parent. Item Lead Time Amount onHand DirectComponents End item 1 - L(2), C(1), K(3) L 1 8 B(2), J(3) C 3 14 G(2), B(2) K 3 18 H(4), B(2) B 1 24 J 4 34 G 3 38 H 3 - a. This part of the question is not part of your Connect assignment.b. If 44 units of the end item are to be assembled, how many additional units of B are needed? (You don’t need to develop the MRP tables.)Additional units c. An order for 44 units of the end item is scheduled to be shipped at the start of week 8. What is the latest week that the components of the order can be started and the order still be ready to ship on time? (You don’t need to develop the MRP tables.)The latest weekarrow_forwardUse the following MRP record to answer the question. Item: LMN Description: Gross requirements. Scheduled receipts Projected on hand Date Planned receipts 30 Planned order releases Which one of the statements concerning item LMN is TRUE? O A. The projected on - hand inventory in week 8 is 70 units. B. The scheduled receipt of 80 units in week 3 should be expedited so that it is finished in week 2. OC. The planned order release quantity in week 3 is 80 units. O D. The planned receipt quantity in week 6 is 30 units. 1 2 3 60 80 4 Lot Size 80 units Lead Time: 3 weeks 5 30 30 80arrow_forward
- Given the following product structure, master production schedule, and inventory status below and assuming the requirements for each BOM item is 1: (a) develop a gross requirements plan for Item C; (b) develop a net requirements plan for Item C. Click the icon to view the product structure, master production schedule and inventory status. a) Develop a gross requirements plan for Items C. To do so, first find the gross requirements plans for its parents: items A and H. (Enter your responses as whole numbers). Week 2 3 4 5 6 7 Item A Gross req Order req. 1 More Info Period Gross requirements: A Gross requirements: H Item A B BUDE E A On Hand 15 110 60 40 85 с 8 100 Lead Time 1 2 2 1 2 Q 9 90 Item LUISY 8 100 10 60 9 0 On Hand 80 65 20 110 110 11 50 10 60 H K 11 0 12 160 Lead Time 2 1 1 2 2 12 160 G Xarrow_forwardGiven the following product structure, master production schedule, and inventory status below and assuming the requirements for each BOM item is 1: (a) develop a gross requirements plan for Item C; (b) develop a net requirements plan for Item C. Click the icon to view the product structure, master production schedule and inventory status. a) Develop a gross requirements plan for Items C. To do so, first find the gross requirements plans for its parents: items A and H. (Enter your responses as whole numbers). Item A Gross req 1 2 More Info 3 Period Gross requirements: A Gross requirements: H Item A B C D E 4 A On Hand 15 110 60 40 85 5 Week 6 7 8 100 Lead Time 1 2 2 1 2 Q 9 90 8 Item F G H E J K 10 60 9 On Hand 80 65 20 110 110 10 11 50 E H K 11 12 12 160 Lead Time 2 1 1 2 2 G C ■ G Xarrow_forwardThe gross requirements for item A are specified for the beginning of weeks 1 through 12 in the table that follows. Item A, Level 0 01 02 03 04 05 06 07 08 09 10 11 12 0 60 0 50 0 70 0 40 0 60 0 50 60 ? ? ? ? ? ? ? ? ? ? ? ???????????? Gross requirements. Projected on hand Planned order release The lead time is 2 weeks. The current on hand inventory, at the beginning of week 1 is 60 units. If the order cost is $80 per order and the inventory cost is $1 per unit per period, and the order quantity is the computed part period (or a multiple of the computed part period) when it is necessary to place an order, what is the total cost for the 12 week period? Answer:arrow_forward
- Jenny Malone works for the Columbus based Cummins Diesel Engine company. Jenny works in the production scheduling department and she is developing an MRP planning schedule for Item J. Please assist Jenny by developing the correct net requirements, planned order receipts, and planned order releases to meet the gross requirements. The lead time is one week. (Leave no cells blank - be certain to enter "0" in all open cells as required.) ITEM J Gross requirements On hand Net requirements Planned order receipt Planned order release Item J LT=1 Q = L4L 0 32 Period Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases 1 WEEK NUMBER 2 3 76 4 48 5 72 2 76 3 48 72arrow_forwardFigure 1 shows the BOM for product A. Table 1 shows the MPS quantity start dates for product A, and Table 2 contains data from inventory records for items B, C, and D. The production planner wants to determine the material requirements plan for items B, C, and D for the next 8 weeks. What is the planned receipts quantity for item D for week 6? C (3) D (2) 8 (1) D (2) C2) Figure 1. BOM for product A Table 1. MPS quantity start dates for product A Week Product 1 3 70 4. 6. 7. 8. 80 100 70 100 Table 2. Inventory record data Item Data category Lot-sizing rule Lead time Scheduled receipts Beginning inventory Safety stock LAL 2 weeks 100 (week 3) FOQ= 500 1 week 150 (week 1) POQ (P-4) 1 week 500 (week 1) 600 100 200 None 130arrow_forwardGiven the product structure, master productionschedule, and inventory status in Figure 14.13, and assuming therequirements for each BOM item is I:a) develop a gross requirements plan for Item C;b) develop a net requirements plan for Item C.arrow_forward
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