Semans is a manufacturer that produces bracket assemblies. Demand for bracket as

Question

Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 126 units. The following is the BoM in indented form ITEM DESCRIPTION Bracket assembly Wall board Hanger subassembly Hanger casting Ceramic knob Rivet head screw Metal tong Plastic cap Below is a table indicating current inventory levels tem Invento 29 61 25 188 140 950 110 a. What are the net requirements of each item in the MPS? (Leave no cells blank - be certain to enter "O" wherever required.) Hint: replace negative value with "O". Item Net Requirements

Explanation / Answer

As a first step we find the Gross Requirement of each item using the BOM and Demand for X i.e. 126. and the inventory level
The BOM indicated the number of units of each item needed to make one unit of X.
Thus each unit of X needs 4 units of A; 2 Units of B and 4 units of C.
The demand for X is 126, however there is an inventory for 29 available.
Thus the net requirement for X = 126-29 = 97

Thus Gross Demand of A,b and C are
A: 97*4 = 388
B: 97* 2 = 194
C: 97*4 = 388

By Subtracting the inventory of A, B and C from the gross requirement, we get the net requirement

A: 388 - 20 = 368
B: 194 - 61 = 133
C: 388 - 25 = 363

Each unit of B requires 4 units of D and 1 unit of E. Thus the gross demand for D and E are as follows
D: 4*133 = 532
E: 1*133 = 133

By Subtracting the inventory from the gross demand, we get the net demand for D and E
D: 532 - 188 = 344
E: 133 - 140 = 0 (Since Demand Cannot be negative)

Each unit of C requires 3 units of F and 1 unit of G. Thus the gross demand for F and G are
F: 3*363 = 1089
G: 1*363 = 363

By subtracting the inventory from the gross requirement we get the net requirement

F: 1089 - 950 = 139
G: 363 - 110 = 253

Thus the results of net requirement can be summarized as follows

Item Net Requirement X 97 A 368 B 133 D 344 E 0 C 363 F 139 G 253

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