14. Complete the following MRP records for the Vaxidene drug. Note the following
ID: 368467 • Letter: 1
Question
14. Complete the following MRP records for the Vaxidene drug. Note the following:
· Doses have been converted into milligrams to facilitate material planning (4250 doses = 17000 milligrams).
· Make sure that you calculate the correct requirements for each compound and drug. For instance, each 40milligram dose requires 2 milligrams of compound X (2 to 1). Therefore, to start mixing 17000 milligrams of Vaxidene, Baxter Pharmaceuticals will need 8500 milligrams of compound X.
390 PART IV PLANNING AND CONTROLLING OPERATIONS AND SUPPLY CHAINS ,, Vaxidene WEEK 0 17000 0 17,000 0 14,000 14,000 LT (weeks) 1 start mixi Mps due date Compound Gross requirements cheduled receipts LT (weeks) Projected ending inventory: 1,500 Net requirements anned receipts Minimum order (mg) 20,000 Planned orders CompoundGross requirements LT (weeks) = cheduled receipts Projected ending inventory: 1,000 Net requirements Minimum order (mg) = 5,00, Planned receipts Planned orders 200 Compound Gross requirements LT (weeks)Scheduled receipts Projected ending inventory: o Net requirements Minimum order img) Planned receipts Planned orders ***Chemical A Gross requirements LT (weeks) heduled receipts Projected ending inventory: 500 Net requirements Planned receipts Planned orders order (mgl **Chemical B* LT (weeks) : Gross requirements Scheduled receipts Projected ending inventory: 0 Net requirements panned receipts Planned orders Minimum order (mg) 4,0 *Chemical CGross requirements LT (weeks) cheduled receipts Projected ending inventory: 0 Net requirements lanned receipts Planned orders Gross requirements Scheduled receipts Projected ending inventory: 3,000 Net requirements Planned receipts Planned orders Minimum order (mg) 2,000 ***Chemical D LT (weeks) Minimum order(mg)Explanation / Answer
13.
(a)
(b)
Note that given all previous orders and MPS remains the same as above, it is not possible to commit to another 2,000 items as the ATP everywhere is less than 2,000. So, the order of 2,000 more items cannot be confirmed at least up to the 8th week of Jan. If it happens that at the end of week 8, the previous ATP of 1021 remains unutilized, then the beginning inventory at week 9 will be 1021 and then the ATP of 1067+1021 = 2089 will be sufficient to commit 2,000 additional items. So, now at the beginning of Jan, it can only commit 1021 items and then in the beginning of Feb, again the remaining.
(c)
When immediate fulfillment is required, two things can be done - a) Increase the MPS lot size (for this, Baxter needs to take approval of the top management), b) Postpone some of the orders (total 979 items) of Jan to Feb so that ATP increases to 2000 in Jan 9For this, Baxter needs to talk to the respective customers who have given the orders).
14.
Month Dec Jan Feb Week 6 7 8 9 10 11 12 13 Forecast 1000 1000 1250 1250 1500 1500 1750 1750 Orders 1095 950 1100 963 1125 1095 1243 1208 Projected on hand inventory 916 3071 2071 821 3821 2321 821 2571 821 MPS 3250 0 0 4250 0 0 3500 0 ATP 1021 1067 1049Related Questions
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