Assume that you are the manager of Assembly, Inc. You have just received an orde
ID: 428387 • Letter: A
Question
Assume that you are the manager of Assembly, Inc. You have just received an order for 40 units of an industrial robot, which is to be delivered at the start of week 7 of your schedule. Using the following information, determine how many units of subassembly G to order and the timing of those orders (using MRP method). Assume that subassembly G must be assembled in multiples of 30 units. Also assume that an extra 30 percent scrap for Robot assembly must be included.
Lead Time (weeks)On Hand Components B, G, C(3) E, F G(2), H Item 2 20 5 10 4 8 18 10 Robot 2Explanation / Answer
For delivering 20 robots in week 7, ( 20 they already have in stock, hence 40-20 =20), they need
20x1.3 = 26 units worth of raw material, i.e.
26G, 26B and 78C. ( in week 5)
For producing 68C in week 5 ( 10 units of C are already on hand hence 78-10 =68)
They need 68 x2 = 136 units of G in week 4.
Since they already have 18 G, they will need 136-18 =118 units in week 4.
Orders in week 2 ( for delivery in week 4)= 118 units ( 4 lots of 30 units)
Orders to be placed in week 3 ( for delivery in week 5) = 24 units ( 2 from the previous week remain) ( 1 lot of 30 units)