Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
11th Edition
ISBN: 9780135639221
Author: Jay Heizer, Barry Render
Publisher: PEARSON+
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Chapter 14, Problem 10P

a)

Summary Introduction

To develop: A gross requirements plan for all the items.

Introduction:

Gross requirements plan:

The gross requirements plan is the plan where the independent and dependent demand for a product or a component before the on-hand inventory and the scheduled receipts are netted with.

a)

Expert Solution
Check Mark

Explanation of Solution

Given information:

Product structure:

Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+), Chapter 14, Problem 10P , additional homework tip  1

Master production schedule for X1:

MPS for X1
Period 7 8 9 10 11 12
Gross requirements 50 20 100

Inventory and lead time:

Item X1 B1 B2 A1 C D E
Lead time 1 2 2 1 1 1 3
On hand 50 20 20 5 0 0 10

Item X1:

Week
Item X1 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 50 20 100
Order release 50 20 100

The gross requirements are 50, 20 and 100 (1 assembly of X1) in weeks 8, 10 and 12 respectively derived from the master production schedule of X1. The lead time is 1 week. Therefore, the order release will be 50, 20 and 100 in weeks 7, 9 and 11 respectively.

Item B1:

Week
Item B1 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 50 20 100
Order release 50 20 100

The order release of X1 will become the gross requirements of B1. The gross requirements are 50, 20 and 100 (1 assembly of B1) in weeks 7, 9 and 11 respectively. The lead time is 2 weeks. Therefore, the order release will be 50, 20 and 100 in weeks 5, 7 and 9 respectively.

Item B2:

Week
Item B2 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 100 40 200
Order release 100 40 200

The order release of X1 will become the gross requirements of B2. The gross requirements are 100, 40 and 200 (2 assemblies of B2) in weeks 7, 9 and 11 respectively. The lead time is 2 weeks. Therefore, the order release will be 100, 40 and 200 in weeks 5, 7 and 9 respectively.

Item A1:

Week
Item A1 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 50 20 100
Order release 50 20 100

The order release of B1 will become the gross requirements of A1. The gross requirements are 50, 20 and 100 (1 assembly of A1) in weeks 5, 7 and 9 respectively. The lead time is 1 week. Therefore, the order release will be 50, 20 and 100 in weeks 4, 6 and 8 respectively.

Item C:

Week
Item C 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 200 80 400
Order release 200 80 400

The order release of B2 will become the gross requirements of C. The gross requirements are 200, 80 and 400 (2 assemblies of C) in weeks 5, 7 and 9 respectively. The lead time is 1 week. Therefore, the order release will be 200, 80 and 400 in weeks 4, 6 and 8 respectively.

Item D:

Week
Item D 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 100 40 200
Order release 100 40 200

The order release of B2 will become the gross requirements of D. The gross requirements are 100, 40 and 200 (2 assemblies of C) in weeks 5, 7 and 9 respectively. The lead time is 1 week. Therefore, the order release will be 100, 40 and 200 in weeks 4, 6 and 8 respectively.

Item E:

Week
Item E 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 200 50 80 20 400 100
Order release 200 50 80 20 400 100

The order release of B1 and D will become the gross requirements of E. The gross requirements are 50, 20 and 100 (1 assembly of E) in weeks 5, 7 and 9 respectively. The lead time is 3 weeks. Therefore, the order release will be 50, 20 and 100 in weeks 2, 4 and 6 respectively.

The gross requirements are 200, 80 and 400 (2 assembly of E) in weeks 4, 6 and 8 respectively. The lead time is 3 weeks. Therefore, the order release will be 200, 80 and 400 in weeks 1, 3 and 5 respectively.

b)

Summary Introduction

To develop: A net requirements plan for all the items.

Introduction:

Net requirements plan:

The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.

b)

Expert Solution
Check Mark

Explanation of Solution

Given information:

Product structure:

Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+), Chapter 14, Problem 10P , additional homework tip  2

Master production schedule for X1:

MPS for X1
Period 7 8 9 10 11 12
Gross requirements 50 20 100

Inventory and lead time:

Item X1 B1 B2 A1 C D E
Lead time 1 2 2 1 1 1 3
On hand 50 20 20 5 0 0 10

Item X1:

Week
Item X1 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 50 20 100
Scheduled  receipt
On hand (50) 50 0 0
Net requirement 0 20 100
Planned order receipt 20 100
Planned order release 20 100

Week 8:

The gross requirement is 50 (1 assembly)derived from the master production schedule of X1. The on hand inventory is 50. Hence, the net requirement is 0. The lead time is 1 week. Therefore, there will be no planned order release.

Week 10:

The gross requirement is 20 (1 assembly) derived from the master production schedule of X1. The on hand inventory is 0. Hence, the net requirement is 20. The lead time is 1 week. Therefore, the planned order release will be 20 in week 9 which will be the planned order receipt in week 10.

Week 12:

The gross requirement is 100 (1 assembly) derived from the master production schedule of X1. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 1 week. Therefore, the planned order release will be 100 in week 11 which will be the planned order receipt in week 12.

Item B1:

Week
Item B1 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 20 100
Scheduled  receipt
On hand (20) 20 0
Net requirement 0 100
Planned order receipt 100
Planned order release 100

Week 9:

The gross requirement is 20 (1 assembly) derived from the planned order release of X1. The on hand inventory is 20. Hence, the net requirement is 0. The lead time is 2 weeks. Therefore, there will be no planned order release.

Week 11:

The gross requirement is 100 (1 assembly) derived from planned order release of X1. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 2 weeks. Therefore, the planned order release will be 100 in week 9 which will be the planned order receipt in week 11.

Item B2:

Week
Item B2 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 40 200
Scheduled  receipt
On hand (20) 20 0
Net requirement 20 200
Planned order receipt 20 200
Planned order release 20 200

Week 9:

The gross requirement is 40 (2 assembly) derived from the planned order release of X1. The on hand inventory is 20. Hence, the net requirement is 20. The lead time is 2 weeks. Therefore, the planned order release will be 20 in week 7 which will be the planned order receipt in week 9.

Week 11:

The gross requirement is 200 (2 assembly) derived from planned order release of X1. The on hand inventory is 0. Hence, the net requirement is 200. The lead time is 2 weeks. Therefore, the planned order release will be 200 in week 9 which will be the planned order receipt in week 11.

Item A1:

Week
Item A1 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 100
Scheduled  receipt
On hand (5) 5
Net requirement 95
Planned order receipt 95
Planned order release 95

Week 9:

The gross requirement is 100 (1 assembly) derived from the planned order release of B1. The on hand inventory is 5. Hence, the net requirement is 95. The lead time is 1 week. Therefore, the planned order release will be 95 in week 8 which will be the planned order receipt in week 9.

Item C:

Week
Item C 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 40 400
Scheduled  receipt
On hand (0) 0 0
Net requirement 40 400
Planned order receipt 40 400
Planned order release 40 400

Week 7:

The gross requirement is 40 (2 assembly) derived from the planned order release of B2. The on hand inventory is 0. Hence, the net requirement is 40. The lead time is 1 week. Therefore, the planned order release will be 40 in week 6 which will be the planned order receipt in week 7.

Week 9:

The gross requirement is 400 (2 assembly) derived from planned order release of B2. The on hand inventory is 0. Hence, the net requirement is 400. The lead time is 1 week. Therefore, the planned order release will be 400 in week 8 which will be the planned order receipt in week 9.

Item D:

Week
Item D 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 20 200
Scheduled  receipt
On hand (0) 0 0
Net requirement 20 200
Planned order receipt 20 200
Planned order release 20 200

Week 7:

The gross requirement is 20 (1 assembly) derived from the planned order release of B2. The on hand inventory is 0. Hence, the net requirement is 20. The lead time is 1 week. Therefore, the planned order release will be 20 in week 6 which will be the planned order receipt in week 7.

Week 9:

The gross requirement is 200 (1 assembly) derived from planned order release of B2. The on hand inventory is 0. Hence, the net requirement is 200. The lead time is 1 week. Therefore, the planned order release will be 200 in week 8 which will be the planned order receipt in week 9.

Item E:

Week
Item E 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirements 40 400 100
Scheduled  receipt
On hand (10) 10 0 0
Net requirement 30 400 100
Planned order receipt
Planned order release 30 400 100

Week 6:

The gross requirement is 40 (2 assembly) derived from the planned order release of B2. The on hand inventory is 10. Hence, the net requirement is 30. The lead time is 3 weeks. Therefore, the planned order release will be 30 in week 3 which will be the planned order receipt in week 6.

Week 8:

The gross requirement is 400 (2 assembly) derived from the planned order release of B2. The on hand inventory is 0. Hence, the net requirement is 400. The lead time is 3 weeks. Therefore, the planned order release will be 400 in week 5 which will be the planned order receipt in week 8.

Week 9:

The gross requirement is 100 (1 assembly) derived from the master production schedule of B1. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 3 weeks. Therefore, the planned order release will be 100 in week 6 which will be the planned order receipt in week 9.

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Students have asked these similar questions
Complete the following table. Lead time for the part is 2 weeks, and the order quantity is 50. What action should be taken?
a) Given the product structure and master production scheduleshown in Figure 14.12, develop a gross requirements plan forall items.b) G iven the product structure, master production schedule, andinven tory status shown in Figure 14.12, develop a net requirementsplan (planned order release) for all items.
What do you understand by Materials requirements planning (MRP)?

Chapter 14 Solutions

Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)

Ch. 14 - What functions of the firm affect an MRP system?...Ch. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - As an approach to inventory management, how does...Ch. 14 - Prob. 16DQCh. 14 - Use the Web or other sources to: a) Find stories...Ch. 14 - Prob. 18DQCh. 14 - Prob. 19DQCh. 14 - You have developed the following simple product...Ch. 14 - You are expected to have the gift bags in Problem...Ch. 14 - Prob. 3PCh. 14 - Your boss at Xiangling Hu Products, Inc., has just...Ch. 14 - The demand for subassembly S is 100 units in week...Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - You are product planner for product A (in Problem...Ch. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Heather Adams, production manager for a Colorado...Ch. 14 - Prob. 19PCh. 14 - Prob. 20PCh. 14 - Prob. 21PCh. 14 - Prob. 22PCh. 14 - Data Table for Problems 14.22 through 14.25 ...Ch. 14 - Develop a POQ solution and calculate total...Ch. 14 - Using your answers for the lot sizes computed in...Ch. 14 - M. de Koster, of Rene Enterprises, has the master...Ch. 14 - Grace Greenberg, production planner for Science...Ch. 14 - Prob. 28PCh. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Courtney Kamauf schedules production of a popular...Ch. 14 - Using the data for the coffee table in Problem...Ch. 14 - Prob. 1CSCh. 14 - Prob. 2CSCh. 14 - Prob. 1.1VCCh. 14 - Prob. 1.2VCCh. 14 - Prob. 1.3VCCh. 14 - Prob. 2.1VCCh. 14 - Prob. 2.2VCCh. 14 - Prob. 2.3VC
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