Lucky you!! You have been tasked with making 107 boxes of treats for a charity e
ID: 382922 • Letter: L
Question
Lucky you!! You have been tasked with making 107 boxes of treats for a charity event. Because the quantity is so large, the recipe so complex, and any waste would only reduce the profit given to the charity, you decide to use MRP principles to determine how many ingredients to purchase. Today you are specifically interested in Item E, the eggs. You have sketched out the product structure chart like this:
Please show your work. Thank you.
Lucky you!! You have been tasked with making 107 boxes of treats for a charity event. Because the quantity is so large, the recipe so complex, and any waste would only reduce the profit given to the charity, you decide to use MRP principles to determine how many ingredients to purchase. Today you are specifically interested in Item E, the eggs. You have sketched out the product structure chart like this: B(2) C(2) D(3) E(2) The parenthesis give the number needed for the parent. For example, you will need 2 Bs to make each A Your current inventory is provided in the table below: Item Number Available None 4 E (eggs) 12 You are considering purchasing those big boxes of 5 dozen (60 eggs) from Costco but are worried that you may have too many leftover eggs. How many leftover eggs would you have?Explanation / Answer
Net requirement plan of E is as given below:
Gross requirement of an item = Net requirement of parent * Usage factor
Net requirement = Gross requirement - Amount on hand
Total requirement of E = 408+625+198 = 1231 eggs
Therefore, there will be leftover eggs from those 60 eggs. Infact, in addition to those 60 eggs, 1171 more eggs would be required.
Item Immediate Parent Usage factor Amount On Hand Gross Requirement Net Requirement A - 107 107 B A 2 4 214 210 C A 2 9 214 205 D B 3 5 630 625 F C 1 7 205 198 E B 2 12 420 408 E D 1 625 625 E F 1 198 198Related Questions
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