Consider the following bill of material. The manufacturer has identified the fol
ID: 379473 • Letter: C
Question
Consider the following bill of material. The manufacturer has identified the
following Master Production Schedule: A is 30 units in week 3 and 15 units in week 5.
The relevant inventory and ordering information is as follows:
Item
On-Hand
Scheduled Receipts
Lot Size
Lead Time
A
20
1
1 week
B
10
5 beginning week 2
6
2 weeks
C
0
1
1 week
D
10
12
1 weeks
E
0
1
1 week
Develop the net material requirements plan.
Item
On-Hand
Scheduled Receipts
Lot Size
Lead Time
A
20
1
1 week
B
10
5 beginning week 2
6
2 weeks
C
0
1
1 week
D
10
12
1 weeks
E
0
1
1 week
E (3) D (2)Explanation / Answer
Ans:
Calculations for requirement of 30 units of A in week 3
Units already on hand = 20,
We need to produce 30-20 = 10 units of A in week 3.
For this, we need 10 units of B and C each in week 2.
Stock of B in week 2 = 10+5 =15,
Requirement in week 2 = 10, so no need to procure units of B in week 2
Stock of C in week 2 =0. so we need to order 10 units of C in week 1. ( 10 lots)
Part II= To meet 15 unit requirement of A in week 5
We need to order 15 units of A in week 4.
For this, we need to order 15 units of C in week 4.
For meeting the order of 15 units of B in week 4, we have to see the availability of same.
From part I, we have 5 units of B available in week 2, which will increase to 10 units in week 3 and 15 units in week 4
We don't need to order B.
Hence the materail requirement of the system.
We need to order 10 units of C in week 1 and 15 units in week 4. Rest units don't need to be ordered.
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