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An office furniture manufacturer needs to calculate material requirements for on

ID: 463917 • Letter: A

Question

An office furniture manufacturer needs to calculate material requirements for one of its most popular office chairs. The graphic below shows the bill of material as well as the MRP table for the top-level assembly (the chair).

Chairs (Round your answer to the nearest whole number.)

Chairs (Round your answer to the nearest whole number.)

Chairs (Round your answer to the nearest whole number.)

Chairs (Round your answer to the nearest whole number.)

Bill of Material for Chair Chair Final Assembly Base Assembly (1 required) (other parts...) Caster (other parts...) (5 required)

Explanation / Answer

on hand

8/1

8/8

8/15

8/22

8/29

9/5

9/12

9/19

9/26

Gross requirement

300

300

300

400

400

400

400

500

300

Schedule receipt

320

640

480

Project in hand

201

221

-79

-379

-139

-539

-459

-859

-1359

-1659

Net requirement

99

79

379

779

539

939

859

1359

1659

In week 8/8 Project in hand is -79

Thus with schedule receipt of 160 the net requirement will be fulfilled with project in hand + schedule receipt.

on hand

8/1

8/8

8/15

8/22

8/29

9/5

9/12

9/19

9/26

Gross requirement

300

300

300

400

400

400

400

500

300

Schedule receipt

320

640

480

Project in hand

201

221

81

-219

21

-379

-299

-699

-1199

-1499

Net requirement

99

79

219

619

379

779

699

1199

1499

Planned order receipt

160

Planned order released

160

Now in Week 8/15 project in hand is -219, thus schedule receipt of 1 lot=160 unit will not fulfill. Thus 2 lot means 360 chairs need to be order to fulfill.

on hand

8/1

8/8

8/15

8/22

8/29

9/5

9/12

9/19

9/26

Gross requirement

300

300

300

400

400

400

400

500

300

Schedule receipt

320

640

480

Project in hand

201

221

81

141

381

-19

61

-339

-839

-1139

Net requirement

99

79

219

259

19

419

339

839

1139

Planned order receipt

160

360

Planned order released

160

360

Similarly looking at –ve number is project in hand and adding lot in the schedule receipt the final MRP is shown below

on hand

8/1

8/8

8/15

8/22

8/29

9/5

9/12

9/19

9/26

Gross requirement

300

300

300

400

400

400

400

500

300

Schedule receipt

320

640

480

Project in hand

201

221

81

101

341

101

181

101

81

101

Net requirement

99

79

219

299

59

299

219

399

219

Planned order receipt

160

320

160

320

480

320

Planned order released

160

320

160

320

480

320

Based on the above MRP the answer follows

1)

Net Requirement in week 8/15=219

2)

Planned order release in week 9/5=320

3)

Schedule receipt in week 9/19=480

4)

Projected On-Hand Inventory quantity in the week of 9/26=101

on hand

8/1

8/8

8/15

8/22

8/29

9/5

9/12

9/19

9/26

Gross requirement

300

300

300

400

400

400

400

500

300

Schedule receipt

320

640

480

Project in hand

201

221

-79

-379

-139

-539

-459

-859

-1359

-1659

Net requirement

99

79

379

779

539

939

859

1359

1659