A table is assembled using three components, as shown in the accompanying produc
ID: 366908 • Letter: A
Question
A table is assembled using three components, as shown in the accompanying product structure tree. The company that makes the table wants to ship 100 units at the beginning of day 4, 150 units at the beginning of day 5, and 200 units at the beginning of day 7. Receipts of 100 wood sections are scheduled at the beginning of day 2. There are 120 legs on hand. An additional 10 percent of the order size on legs is added for safety stock. There are 60 braces on hand with no safety stock requirement for braces. Lead times (in days) for all items are shown in the following table. Prepare a material requirements plan using lot-for-lot ordering. (Incorporate the safety stock for the legs by using the following formula: Planned order-receipts = Net Requirements * (1 + Safety Stock %). Round up any fractional values. Then carry the safety stock forward in subsequent on-hand inventory calculations. Leave no cells blank - be certain to enter "0" wherever required.)
Master Schedule
A table is assembled using three components, as shown in the accompanying product structure tree. The company that makes the table wants to ship 100 units at the beginning of day 4, 150 units at the beginning of day 5, and 200 units at the beginning of day 7. Receipts of 100 wood sections are scheduled at the beginning of day 2. There are 120 legs on hand. An additional 10 percent of the order size on legs is added for safety stock. There are 60 braces on hand with no safety stock requirement for braces. Lead times (in days) for all items are shown in the following table. Prepare a material requirements plan using lot-for-lot ordering. (Incorporate the safety stock for the legs by using the following formula: Planned order-receipts = Net Requirements * (1 + Safety Stock %). Round up any fractional values. Then carry the safety stock forward in subsequent on-hand inventory calculations. Leave no cells blank - be certain to enter "0" wherever required.)
Table Wood sections (2Braces (3) Legs (4)Explanation / Answer
a)Material Requirement Plan for Braces using lot-for-lot ordering
b) Material Requirement Plan for legs using lot size of 60
Notes:
Gross Requirements (day 3) = Planned-Order Releases of 100 Tables * 4 = 400.
Gross Requirements (day 4) = Planned-Order Releases of 150 Tables * 4 = 600.
Gross Requirements (day 6) = Planned-Order Releases of 200 Tables * 4 = 800.
POH3 = [POH2 + Planned-Order Receipts2 – Gross Requirements2] + Scheduled Receipts3
POH3 = [120 + 0 – 0] + 0 = 120.
POH4 = [POH3 + Planned-Order Receipts3 – Gross Requirements3] + Scheduled Receipts4
POH4 = [120 + 280 – 400] + 0 = 0.
POH5 = [POH4 + Planned-Order Receipts4 – Gross Requirements4] + Scheduled Receipts5
POH5 = [0 + 600 – 600] + 0 = 0.
Planned-Order Releases (day 1) = 280 from Planned-Order Receipts of 280 in day 3 (lead time = 2
days for quantities of 201-550) + 600 from Planned-Order Receipts of 600 in day 4 (lead time = 3
days for quantities of 551-999) = 880.
Planned-Order Releases (day 3) = 800 from Planned-Order Receipts of 800 in day 6 (lead time = 3
days for quantities of 551-999).
c.Master Schedule for Table:
d.Material Requirement Plan for Table using lot size of lot-for-lot-order
Notes:
POH5 = [POH4 + Planned-Order Receipts4 – Gross Requirements4] + Scheduled Receipts5
POH5 = [0 + 100 – 100] + 0 = 0.
POH6 = [POH5 + Planned-Order Receipts5 – Gross Requirements5] + Scheduled Receipts6
POH6 = [0 + 150 – 150] + 0 = 0.
Planned-Order Releases (days 3, 4, & 6) were back-scheduled 1 day from their Planned-Order
Receipts because all lead times = 1 day for quantities of 1-200.
e.Material Requirement Plan for Wood
Notes:
Gross Requirements (day 3) = Planned-Order Releases of 100 Tables * 2 = 200.
Gross Requirements (day 4) = Planned-Order Releases of 150 Tables * 2 = 300.
Gross Requirements (day 6) = Planned-Order Releases of 200 Tables * 2 = 400.
POH3 = [POH2 + Planned-Order Receipts2 – Gross Requirements2] + Scheduled Receipts3
POH3 = [100 + 0 – 0] + 0 = 100.
POH4 = [POH3 + Planned-Order Receipts3 – Gross Requirements3] + Scheduled Receipts4
POH4 = [100 + 100 – 200] + 0 = 0.
Planned-Order Releases (day 2) = 100 from Planned-Order Receipts of 100 in day 3 (lead time = 1
day for quantities of 1-200) + 300 from Planned-Order Receipts of 300 in day 4 (lead time = 2 days
for quantities of 201-550) = 400.
Planned-Order Releases (day 4) = 400 from Planned-Order Receipts of 400 in day 6 (lead time = 2
days for quantities of 201-550).
Week 1 2 3 4 5 6 7 8 9 Demand 300 450 600 Gross Requirement 300 450 600 OH/SR 60 150 Project On Hand 60 60 60 60 0 0 0 0 Net Requirements 240 450 600 Planned order-Reciepts 240 450 600 Planned Order- Release 240 450 600Related Questions
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