Below is the Bill of Materials (BOM) and Master Production Schedule (MPS) for a
ID: 452099 • Letter: B
Question
Below is the Bill of Materials (BOM) and Master Production Schedule (MPS) for a chair. The number in the parenthesis indicates the quantity needed and the lead time is shown in weeks.
Week
1
2
3
4
5
6
7
8
Quantity Needed
0
0
0
35
75
65
80
85
2. Determine the timing of the Planned Receipts and Planned Order Releases for the chairs assuming Scheduled receipts of 20 units in week 2 and 35 units in week 4 and a Projected On-hand Inventory of 20 units. Assume a L4L lot sizing rule with a lead time period of 2 weeks.
Week
1
2
3
4
5
6
7
8
Quantity Needed
0
0
0
35
75
65
80
85
Explanation / Answer
Lot for Lot (L4L). under this rule the lot size ordered covers the gross requirements for a single period (week) and minimizes inventory levels. It results in the largest number of order placements. This rule ensures that the planned order is just large enough to prevent a shortage in the single week it covers.
Lot Size: L4L Lead Time: 2 week Week 1 2 3 4 5 6 7 8 Quantity Needed 0 0 0 35 75 65 80 85 Scheduled Receipts 20 35 Projected On Hand 20 20 40 40 40 0 0 0 0 Planned Receipts 35 65 80 85 Planned Order Releases 35 65 80 85Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.