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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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