(Part A) consists of the (S100, C200, C300): Develop the complete procurement sc
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Question
(Part A) consists of the (S100, C200, C300):
Develop the complete procurement schedule for these components. PART A, PART S100 and PART C200?
construct the MRP for Part A, subassembly S100, and component C200 to meet demand for Part A below:
Week
Weekly demand for Part A
1
50
2
60
3
45
4
80
5
75
6
75
7
55
8
60
9
60
10
55
The information might be important.
Part A
Procured on a lot-for-lot basis
One week lead time between when an order is placed and when it arrives
An order for 100 units is scheduled to arrive in week 6
On-hand inventory entering the planning horizon is 55 units
10 units of safety stock are required (i.e., plan to have 10 extra units on hand all of the time)
part S100
Procurement is according to the “least unit cost method” with:
cost to place an order = $40
base price of a subassembly = $150
discount price of assembly = $125 if order size > 100
holding cost is $1 per unit per week
One week lead time
An order for 100 units is scheduled for arrival in period 7
On-hand inventory entering the planning horizon is 100 subassemblies.
part C200
Procured using a “modified EOQ.”To compute this, find the demand for this component in each of the planning periods and, then average them.Use this average as the demand in the EOQ calculation given that the cost to place an order is $50 and holding is estimated to be $.50 per unit per week.. that is your order quantity
Lead time is two weeks
An order for 100 units is scheduled for arrival in period 7
On-hand entering inventory is expected to be 0 because this component is new to this design starting with this build.
Develop the complete procurement schedule for these components. PART A, PART S100 and PART C200?
Week
Weekly demand for Part A
1
50
2
60
3
45
4
80
5
75
6
75
7
55
8
60
9
60
10
55
Explanation / Answer
MRP Lot Sizing: Lot-for-Lot Technique Week 1 2 3 4 5 6 7 8 9 10 Weekly Demand 50 60 45 80 75 75 55 60 60 55 Scheduled receipts 100 Projected on hand 55 55 10 10 10 10 35 10 10 10 10 Net requirements 5 65 45 80 75 75 55 60 60 55 Planned order receipts 65 45 80 75 0 30 60 60 55 Planned order releases 65 45 80 75 0 30 60 60 55 Least unit cost method Week 1 2 3 4 5 6 7 8 9 10 Weekly Demand 50 60 45 80 75 75 55 60 60 55 Scheduled receipts 100 Projected on hand 100 50 94 49 73 102 27 72 12 56 1 Net requirements 50 60 45 80 75 75 55 60 60 55 Planned order receipts 104 0 104 104 0 0 0 104 55 Planned order releases 104 0 104 104 0 0 0 104 0 0 Modified EOQ Week 1 2 3 4 5 6 7 8 9 10 Average Annual Weekly Demand 50 60 45 80 75 75 55 60 60 55 61.5 3198 Scheduled receipts 100 Projected on hand 0 0 66 97 22 58 103 43 94 39 Net requirements 50 60 45 80 75 75 55 60 60 55 Planned order receipts 0 111 111 0 111 0 0 111 0 Planned order releases 111 111 111 0 0 111 0 0 week annual holding cost 0.5 26 carrying cost 50 EOQ 111
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