Problem 12-8 Oh No!, Inc, sells three models of radar detector units. It buys th

Question

Problem 12-8 Oh No!, Inc, sells three models of radar detector units. It buys the three basic models (E, F, and G) from a Japanese manufacturer and adds one, two, or four lights (component D) to further differentlate the models. D is bought from a domestic producer. D(2) D(4) Lead times are one week for all Items except C, which is two weeks. There are ample supplies of the basic unlts (E, F, and G) on hand. There are also 10 units of B, 10 units of C, and 25 units of D on hand. Lot-sizing rules are lot-for-lot ordering for all Items except D which must be ordered in multiples of 100 units. There is a scheduled recelpt of 100 unlts of D In week 1 The master schedule calls for 40 units of A to be produced at the beginning of week 4, 60 units of B at the beginning of week 5, and 30 units of C at the beginning of week 6 Prepare a material requirements plan for D and its parents. (Leave no cells blank-be certaln to enter"O" wherever required.) Parent A

Explanation / Answer

Net requirement (current period)= Gross requirement (current period)-scheduled receipt (current period) - Projected available balance (previous period)

For A lead time is 1 week so for the gross requirement of 40 units in week 4 has to be planned in 3rd week whic is planned order receipt in 4th week

For B same procedure adopted as A but here as 10 units beginning inventory was there so only 50 units are planned on 4th week for 5th week requirement of 60

As for C lead time is 2 weeks 2 weeks before i.e.on 4th week an order released of 20 units considering 10 units of on-hand inventory

As D is a child its gross requirement comes from parent planned order release week

For A only one unit of D required so week 3 40 units of D is gross required for A

For one unit of B 2 units of D required so for 50 units of B 100 units of D required in 4th week and also for one unit of C 4 units of D is required so in the third week again for 2o units of C 80 units of D required so total gross requirement is 180

beginning inventory was 25 and a Scheduled receipt was 100 in week 1 so calculations are done accordingly

Lot size is 100

Please comment if any doubt

Thanks

Parent A   LT=1W Beg Inv 1 2 3 4 5 6 Gross Requirement 0 0 0 0 40 0 0 Scheduled Receipt 0 0 0 0 0 0 Projected On hand Balance 0 0 0 0 0 0 Net Requirements 0 0 0 40 0 0 Planned Order receipt 0 0 0 40 0 0 Planned Order Release 0 0 40 0 0 0

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