A toy manufacturing company has collected 10 periods of data for two of its toys
ID: 462921 • Letter: A
Question
A toy manufacturing company has collected 10 periods of data for two of its toys, X and Y. Using the two data sets as gross requirements data, construct MRP time-phased records. Using Excel spreadsheet, create four time-phased records, two for each data set. For one case, use a lot size of 220 units, and for the other use an order quantity equal to the total net requirements for the next two periods. In all four records, start with a beginning inventory of 220 units and compute the average inventory level held over the 10 periods. What do the results mean?
(Questions based on chapter 6 of the book Manufacturing Planning and Control for Supply Chain Management. 6th edition)
If you're not answering this fully, don't bother.
Explanation / Answer
Item: X, OH = 220, Lot Size = 220
1
2
3
4
5
6
7
8
9
10
Gross Req.
141
126
119
135
122
127
121
128
126
131
Scheduled receipts
0
0
0
0
0
0
0
0
0
0
Projected-on-hand
220
79
173
54
139
17
110
209
81
175
Net Requirement
0
47
0
81
0
110
11
0
45
0
Planned order Receipts
0
220
0
220
0
220
220
0
220
0
Planned order releases
0
0
0
0
0
0
0
0
0
0
Avg.
Ending Inventory
79
173
54
139
17
110
209
81
175
44
108.1
Item: X, OH = 220, Lot Size = Net req. + next two month req.
1
2
3
4
5
6
7
8
9
10
Gross Req.
141
126
119
135
122
127
121
128
126
131
Scheduled receipts
0
0
0
0
0
0
0
0
0
0
Projected-on-hand
220
79
254
135
0
248
121
0
257
131
Net Requirement
0
47
0
0
370
0
0
128
0
0
Planned order Receipts
0
301
0
0
0
0
0
385
0
0
Planned order releases
0
0
0
0
0
0
0
0
0
0
Avg.
Ending Inventory
79
254
135
0
248
121
0
257
131
0
122.5
Item: X, OH = 220, Lot Size = 220
1
2
3
4
5
6
7
8
9
10
Gross Req.
147
163
160
102
80
90
86
99
97
159
Scheduled receipts
0
0
0
0
0
0
0
0
0
0
Projected-on-hand
220
73
130
190
88
8
138
52
173
76
Net Requirement
0
90
30
0
0
82
0
47
0
83
Planned order Receipts
0
220
220
0
0
220
0
220
0
220
Planned order releases
0
0
0
0
0
0
0
0
0
0
Avg.
Ending Inventory
73
130
190
88
8
138
52
173
76
137
106.5
Item: X, OH = 220, Lot Size = Net req. + next two month req.
1
2
3
4
5
6
7
8
9
10
Gross Req.
147
163
160
102
80
90
86
99
97
159
Scheduled receipts
0
0
0
0
0
0
0
0
0
0
Projected-on-hand
220
73
262
102
0
176
86
0
256
159
Net Requirement
0
90
0
0
256
0
0
99
0
0
Planned order Receipts
0
352
0
0
0
0
0
355
0
0
Planned order releases
0
0
0
0
0
0
0
0
0
0
Avg.
Ending Inventory
73
262
102
0
176
86
0
256
159
0
111.4
In both the cases of X and Y, the average inventory by using Lot size of 220 is less than the other method.
Item: X, OH = 220, Lot Size = 220
1
2
3
4
5
6
7
8
9
10
Gross Req.
141
126
119
135
122
127
121
128
126
131
Scheduled receipts
0
0
0
0
0
0
0
0
0
0
Projected-on-hand
220
79
173
54
139
17
110
209
81
175
Net Requirement
0
47
0
81
0
110
11
0
45
0
Planned order Receipts
0
220
0
220
0
220
220
0
220
0
Planned order releases
0
0
0
0
0
0
0
0
0
0
Avg.
Ending Inventory
79
173
54
139
17
110
209
81
175
44
108.1
Item: X, OH = 220, Lot Size = Net req. + next two month req.
1
2
3
4
5
6
7
8
9
10
Gross Req.
141
126
119
135
122
127
121
128
126
131
Scheduled receipts
0
0
0
0
0
0
0
0
0
0
Projected-on-hand
220
79
254
135
0
248
121
0
257
131
Net Requirement
0
47
0
0
370
0
0
128
0
0
Planned order Receipts
0
301
0
0
0
0
0
385
0
0
Planned order releases
0
0
0
0
0
0
0
0
0
0
Avg.
Ending Inventory
79
254
135
0
248
121
0
257
131
0
122.5
Item: X, OH = 220, Lot Size = 220
1
2
3
4
5
6
7
8
9
10
Gross Req.
147
163
160
102
80
90
86
99
97
159
Scheduled receipts
0
0
0
0
0
0
0
0
0
0
Projected-on-hand
220
73
130
190
88
8
138
52
173
76
Net Requirement
0
90
30
0
0
82
0
47
0
83
Planned order Receipts
0
220
220
0
0
220
0
220
0
220
Planned order releases
0
0
0
0
0
0
0
0
0
0
Avg.
Ending Inventory
73
130
190
88
8
138
52
173
76
137
106.5
Item: X, OH = 220, Lot Size = Net req. + next two month req.
1
2
3
4
5
6
7
8
9
10
Gross Req.
147
163
160
102
80
90
86
99
97
159
Scheduled receipts
0
0
0
0
0
0
0
0
0
0
Projected-on-hand
220
73
262
102
0
176
86
0
256
159
Net Requirement
0
90
0
0
256
0
0
99
0
0
Planned order Receipts
0
352
0
0
0
0
0
355
0
0
Planned order releases
0
0
0
0
0
0
0
0
0
0
Avg.
Ending Inventory
73
262
102
0
176
86
0
256
159
0
111.4
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