Part 2 Below is the Bill of Materials (BOM) and Master Production Schedule (MPS)
ID: 451407 • Letter: P
Question
Part 2
Below is the Bill of Materials (BOM) and Master Production Schedule (MPS) for a chair. The number in the parenthesis indicates the quantity needed and the lead time is shown in weeks.
Week
1
2
3
4
5
6
7
8
Quantity Needed
0
0
0
35
75
65
80
85
2. Determine the timing of the Planned Receipts and Planned Order Releases for the chairs assuming Scheduled receipts of 20 units in week 2 and 35 units in week 4 and a Projected On-hand Inventory of 20 units. Assume a L4L lot sizing rule with a lead time period of 2 weeks.
Item: Chairs Lot Size: L4L
Description: Lead Time: 2 week
Week
1
2
3
4
5
6
7
8
Gross Requirements
Scheduled
Receipts
Projected
Available Balance
Net
Requirements
Planned
Receipts
Planned Order
Releases
Determine the timing of the Planned Receipts and Planned Order Releases for the leg assemblies assuming Scheduled receipts of 30 units in week 1 and a Projected On-hand Inventory on 40 units. Assume an Economic Order Quantity lot sizing rule where the EOQ is 100.
Item: Leg Assembly Lot Size: EOQ = 100
Description: Lead Time: 2 week
Week
1
2
3
4
5
6
7
8
Gross Requirements
Scheduled
Receipts
Projected
Available Balance
Net
Requirements
Planned
Receipts
Planned Order
Releases
Week
1
2
3
4
5
6
7
8
Quantity Needed
0
0
0
35
75
65
80
85
Explanation / Answer
Given for item - Chairs, L4L and lead time = 2 weeks
Based on MPS, the gross requirement figures are written
The planned order release for leg assemblies can not be calculated becuase the BOM is not given here.
Weeks 1 2 3 4 5 6 7 8 Gross Requirements 0 0 0 35 75 65 80 85 Scheduled Receipts 20 35 Projected Inventory 20 units 20 40 40 75 40 0 0 0 Net Requirements 0 0 0 0 35 65 80 85 Planned Receipts 0 0 0 0 35 65 80 85 Planned order release 35 65 80 85