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End unit P is composed of four K subassemblies and one W. K is assembled using t

ID: 455431 • Letter: E

Question

End unit P is composed of four K subassemblies and one W. K is assembled using three Gs and two Hs, while Ws are assembled using three Ms and two Ns. Your only on hand inventories are 50 Ks and 120Gs. Assembly time for P is 1 day; assembly time for K is 1 day; and lead time for G is 2 days. there are scheduled deliveries of 1600 Gs at the start of day 2 and 2000 Gs at the start of day 4. Ks are only made in lot sizes of 200 (and therefore can order only multiples of this), but Gs may be ordered on a lot-for-lot basis.

a.) You have two orders of finished product for days 5 and 7 as shown below. Avoid backorders and negative inventories. Complete the MRP for Finished Product P, Assembly K, and Part G.

b.) How many and when do Part G's need to be ordered?

c.) How many K's are left over at the end of week 7?

Quantity 1 2 3 4 5 6 7 150 250

Explanation / Answer

(b) 920 units of part G is required  to be ordered on the second day so that it can be received on 4th day with 2 days lead time.

(c) 50 Units of K are left at the end of day seven as the lot size was in multiple of 200 only.

item lead time in day on hand Components Requirement for P requirement for K requirement forG P 1 0 K(4), W(1) 150 600 1650 for 5th week P production K 1 50 G(3),H(2) 250 1000 3000 for 7th week P production W 0 M(3), N(2) G 2 120 H 0 M 0 N 0 Finished Product P 1 2 3 4 5 6 7 Gross Requirements 150 250 Scheduled Receipts Project on-Hand 0 0 0 0 0 0 0 Net Requirements 150 250 Receipt of Assembly K 600 1000 Planned order receipts Planned order Releases Assembly K 1 2 3 4 5 6 7 Gross Requirements 600 1000 Scheduled Receipts Project on-Hand, 50 50 50 50 50 50 50 50 Net Requirements 550 950 Planned order receipts 600 1000 Planned order Releases 600 1000 Part G 1 2 3 4 5 6 7 Gross Requirements 1650 3000 Scheduled Receipts 1600 2000 Project on-Hand, 120 120 120 1720 1720 0 0 0 Net Requirements 0 0 920 Planned order receipts 920 Planned order Releases 920
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