Camp’s Inc. produces two products, X and Z. The bill of materials for these two
ID: 456823 • Letter: C
Question
Camp’s Inc. produces two products, X and Z. The bill of materials for these two products is given in the table below. AN order for 200 units of X and 50 units of Z has been received for period 8. Of the T’s on order, 250 are due in by period 2, 75 S’s should arrive in period 1.
Component
Lead Time
Lot Size
Available on Hand
Components
X
1
Lot-for-Lot
25
R (2)
Z
2
Lot-for-Lot
40
T (2); U (3)
R
2
Lot-for-Lot
30
S (1); U (1); T (1)
S
1
Lot-for-Lot
100
U
2
500
120
V (2); W (4)
T
3
Lot-for-Lot
90
V
1
900
150
W
1
1500
160
a) What is the master production schedule?
b) Determine when orders should be released for items V and W, and the size of those orders. Use the tables provided.
Component
Lead Time
Lot Size
Available on Hand
Components
X
1
Lot-for-Lot
25
R (2)
Z
2
Lot-for-Lot
40
T (2); U (3)
R
2
Lot-for-Lot
30
S (1); U (1); T (1)
S
1
Lot-for-Lot
100
U
2
500
120
V (2); W (4)
T
3
Lot-for-Lot
90
V
1
900
150
W
1
1500
160
Explanation / Answer
(a) MPS of X = 200 - 25 = 175 units ;
MPS of Z = 50 - 40 = 10 units
(b) Net Requirement of U = ((200-25)*2-30)-120 + (50-40)*3 = 230
But the MOQ of U is 500 units. so 500 units of U will be ordered (Planned Order Release). Accordingly Net requirement of V and W will be as below
Net Requirement of V = 500*2 - 150 = 850. But its MOQ is 900 units. So 900 units will be ordered
Net Requirement of W = 500*4 - 160 = 1840. it is more than MOQ, so 1840 units be ordered
Planned Order Release of V = 900 units
Planned Order Release of W = 1840 units
The maximum permissible lead time for V and W = 2 + 2 + 1 = 5 . Order Release Date = 8 - 5 = 3
So Order Shold be released in period 3.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.