Lucky you!! You have been tasked with making 107 boxes of treats for a charity e

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 7 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

Inventory available:

E = 12

F = 7, Each F requires 1 E, hence 7 F means, requirement of E goes down by 7.

C = 9, each C requires 1 F, and one F requires 1 E, which means each requires 1 E, 9 C means requirement of E goes down by 9.

D = 5, each D requires 1 E, hence 5 D means requirement of E goes down by 5.

B = 4, each B requires 3 D and 2 E, 3D would require 3 E, hence total E required for 1 B = 3+2 = 5, Now, we have 4 B in inventory which means 4*5 = 20 E less required.

Producing 1 A requires 2 B and 2 C.

1 B requires 5 E, 2 B requires = 5*2 = 10 E

1 C requires 1 E, 2 C requires = 2*1 = 2 E

for producing 1 A we need 10+2=12 E

for producing 107 A = 107*12 = 1284 E

Now subtracting all the available inventory of items with corresponding E values calculated:

E required = 1284 - E - F - C - D - B

= 1284 - 12 - 7 - 9 - 5 - 20

= 1231

Total E required to be bought = 1231 eggs

Each big box contains 60 eggs, bixes required = 1231/60 = 20.52 = 21

number of eggs bought = 21*60 = 1260

leftover eggs = 1260 - 1231 = 29 E

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