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Below is the Bill of Materials (BOM) and Master Production Schedule (MPS) for a

ID: 2496773 • Letter: B

Question

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

Determine the timing of the Planned Receipts and Planned Order Releases for the leg assemblies assuming Scheduled receipts of 35 units in week 1 and a Projected On-hand Inventory on 40 units. Assume an Economic Order Quantity lot sizing rule where the EOQ is 100.

Item: Leg Assembly                                                         Lot Size: EOQ = 100

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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