. (14 points) Shown below is the MPS of item JJ. The demand occurs at the beginn

Question

. (14 points) Shown below is the MPS of item JJ. The demand occurs at the beginning of each weelk One unit of JJ requires three units of SE. The lot sizing policy is lot for lot for product JJ and multiple of 150 (e.g., 150, 300, 450, etc) for SE·The initial inventory is shown in the table below. Product SE has scheduled receipts at the beginning of week 2 and week 5 as shown below. The purchasing lead time of SE is one week and the assembly lead time of JJ is two weeks. Make a material requirements plan for products JJ and SE. The structure of BOM for JJ is as follows: SE (3) Master Schedule for: Quantity Week 200 130 Beg.1 2 3 Lot size: Lot-for-Lot Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases 100 SE Lot size: Multiple of 150 ross requirements heduled receipts jected on hand ofiso Beg. 50 40 d-order receipts order releases

Explanation / Answer

The demand for JJ is given as 200 in week 6 and 130 in week eight

To assemble item JJ, it takes two weeks. So to ensure the supply on week 6, JJ should be started to assemble in week 4 (two weeks before the demand)

We need three units of SE to produce one unit of item JJ. Hence, at the start of Week 4, we need 3*200=600 units of SE.

SE also has a lead time for purchase ie. 1 week. Hence to assemble JJ, SE should be ordered to purchase one week before ie in the week 3

JJ                                                        Lot-for-lot size Beg inventory 1 2 3 4 5 6 7 8 Gross Requirements 200 130 Scheduled Receipts Projected on hand 100 100 100 100 0 200 0 130 0 Net Requirements 100 130 Planned order receipts 200 130 Planned order releases 200 130

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