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Show me the solution in steps. I will not accepted the answer if you didn\'t sho

ID: 378732 • Letter: S

Question

Show me the solution in steps. I will not accepted the answer if you didn't show me your work "IN STEPS!". Thank you.

Problem 3. (1496) The XYZ Company produces products X and Y One unit of component C is required to manufacture one unit of either product Xor Y. The materials planner has developed the MRP record for component C in the following table. om 15 30 25 25 10 20 Gross Requirements Scheduled Receipts Projected Available Balance 40 5 30 015 30 20 0 Planned Order Release 40 40 During week 1, the following transactions occurred for component C: a. The open order for 40 due to be received in week 1 was received with 10 scrapped b. 5 units of component C were missing. Thus, an inventory adjustment of-5 was processed. c. 10 units of component C were actually disbursed, instead of 15 units planned. d. The MPS for week 7 include 15 units for product X and 0 units for product Y e. Manager suggested the gross requirements of 25 units in week 3 be moved to week 2 f. An order for 40 units was released Given the above information, complete the MRP record below for component C as it would appear at the beginning of week 2. What action(s) would you recommend the materials planner to take at the start of week 2 as a result of transactions occurring during week 1? Co 6 Gross Requirements Scheduled Receipts Projected Available Balance Planned Order Release Q 40, LT 2,SS 0

Explanation / Answer

Gross requirement in week 2 = 30 original gross requirement + 25 of week 3 moved to 2 + 5 backorder of week 1 (10 units were disbursed instead of 15 in week 1). There is an additional gross requirement of 15 units in week 7

After making the adjustments considering the transactions occurred in week 1, the revised MPS of C starting week 2 is as follows

So gross requirement in week 2 = 30 + 25 + 5 = 60

Beginning inventory of week 2 = 5 beginning inventory of week 1 - 5 inventory adjustment + 40 scheduled receipts - 10 scrapped - 10 disbursed = 5 - 5 + 40 - 10 - 10 = 20

An order for 40 units was released in week 1. there is 2 weeks lead time, so Planned order receipt in week 3 = 40

MRP plan is as follows

Given the above MRP plan, there is a shortage of 40 units in week 2, which will be fulfilled in the next week. So manager must postpone the net requirement of these 40 units to week 3.

MPS 2 3 4 5 6 7 C 60 0 25 10 20 15