Part 2 Below is the Bill of Materials (BOM) and Master Production Schedule (MPS)
ID: 2490572 • Letter: P
Question
Part 2
Below is the Bill of Materials (BOM) and Master Production Schedule (MPS) for a chair. The number in the parenthesis indicates the quantity needed and the lead time is shown in weeks.
Week
1
2
3
4
5
6
7
8
Quantity Needed
0
0
0
45
65
75
90
85
Determine the timing of the Planned Receipts and Planned Order Releases for the chairs assuming Scheduled receipts of 25 units in week 2 and 40 units in week 4 and a Projected On-hand Inventory of 20 units. Assume a L4L lot sizing rule with a lead time period of 2 weeks.
Item: Chairs Lot Size: L4L
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
Week
1
2
3
4
5
6
7
8
Quantity Needed
0
0
0
45
65
75
90
85
Explanation / Answer
Item: Chairs Lot Size: L4L
Description: Lead Time: 2 Week
Week
1
2
3
4
5
6
7
8
Gross Requirements
45
65
75
90
85
Scheduled Receipts
25
40
Projected Available balance(20)
20
45
45
40
0
0
0
0
Net Requirements
Planned receipts
25
75
90
85
Planned Order releases
25
75
90
85
Item: Chairs Lot Size: L4L
Description: Lead Time: 2 Week
Week
1
2
3
4
5
6
7
8
Gross Requirements
45
65
75
90
85
Scheduled Receipts
25
40
Projected Available balance(20)
20
45
45
40
0
0
0
0
Net Requirements
Planned receipts
25
75
90
85
Planned Order releases
25
75
90
85
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