SM - Material Requirement Planning - MRP XWF - 25 Points Our strategy is to oper

Question

SM - Material Requirement Planning - MRP

XWF - 25 Points

Our strategy is to operate JIT. All suppliers are certified.

Suppliers are capable of delivering orders within 24 hours.

We operate 5 days per week; we shut down for 14 holidays.

Today marks the start of a 12-month production schedule.

Manufacturing requirement per year = 516,600 finished goods units of XWF; equal production scheduled for each work day; no seasonality.

Six (6) LBT assemblies are required for one (1) XWF

Requirements for each LBT assembly and the beginning inventories of each component:

         3 of part #50; inventory = 89,000; 131,500 to be delivered in 24 hours

         2 of part #60; inventory = 58,000; 39,000 to be delivered in 24 hours

         8 of part #70; inventory = 120,000; 120,000 to be delivered in 24 hours

         5 of part #80; inventory = 171,000; 280,000 to be delivered in 24 hours

Your job is to get components required to meet the production schedule. Factoring in the inventories and amounts on-order shown above, calculate:

1) The amount of each component needed to be purchased for week No. 1; a 5-day week, having no holidays.

2) The additional amounts of each component required for the next 8 weeks, a time period which includes 4 holidays.

3) The additional amounts of each component required for the balance of the year (beyond the 9 weeks above).

** Assume zero (0) component inventories at end of 12 months

** Assume no losses; 100% yield

DKI Oct 2016 copyright

Explanation / Answer

XWF parts to be manufactured per day = 516600/ ( 54x5-14) = 2018

LBT needed per week = 2018x6x5 = 12108x5 =60540

Part 50 needed = 3x60540 = 181620

First day's requirement will be fulfilled through inventory. The week's requirement will be done through additional inventory. No further purchase needed.

Part 60 needed = 2x60540 = 121080

Numbers needed to be purchased for the week = 121080 -( 58000+39000) =24080

Part 70 needed = 8x60540 =484320

Need to be purchased =484320- (240000) = 244320

Part 80 needed = 5x60540 =302700

Inventory available = 451000

Hence no need to purchase this part.

(2) LBT needed for the period = 2018x6x36 =435888

Total number of part 50 needed = 3x435888 =1307664

Parts previously left =38880

Numbers needed = 1268784

Number of part 60 needed = 2x 435888 =871776

There is no previously left part, so all have to be purchased.

Number of part 70 needed = 8x435888 = 3487104

There is no previously left part, so all have to be purchased.

Number of part 80 needed = 5x435888 =2179440

Previously left parts = 148300

Parts need to be purchased = 2179440-148300 = 2031140

(3) Rest of the year = 54-9 = 45 weeks having ( 14-4 =10) holidays

Number of workig days = 45x5 -10 = 215

Total production of XWF = 2018 x215 = 433870

Total number of LBT = 6x 433870 =2603220

Part 50 needed = 3x 2603220 =7809660

Part 60 needed = 2x2603220 =5206440

Part 70 needed = 8x2603220 = 20825760

part 80 needed = 5x 2603220 =13016100

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