Determine the timing of the Planned Receipts and Planned Order Releases for the
ID: 453416 • Letter: D
Question
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
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
2) The daily demand for a product is 17 units with a standard deviation of 2.6 units. The review period is 30 days with a lead time of 14 days. Management has a set policy of satisfying 95% of demand from items in stock. At the beginning of the review period, there are 120 units in inventory. How many units should be ordered?
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
Explanation / Answer
1) Master Production Schedule or Gross Requirement of Leg Assembly is not given in the question, in absence of which MRP schedule, Planned Order Releases, Planned Order Receipts cannot be ascertained.
2) Quantity to Order = 406 units
Daily Demand µD 17 SD of Daily Demand D 2.6 Lead Time (L) days 14 days Service level 95% Z-value 1.64 Safety stock (ss) 16 ss = ZDL Review Period (R) 30 days Demand During Review period = R*µD 510 Stock on Hand (OH) 120 Quantity to Order = R*µD + ss - OH 406Related Questions
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