Below is the Bill of Materials (BOM) and Master Production Schedule (MPS) for a
ID: 452993 • 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
Determine the timing of the Planned Receipts and Planned Order Releases for the leg assemblies assuming Scheduled receipts of 30 units in week 1 and a Projected On-hand Inventory on 40 units. Assume an Economic Order Quantity lot sizing rule where the EOQ is 100.
Item: Leg Assembly Lot Size: EOQ = 100
Description: Lead Time: 2 week
Week
1
2
3
4
5
6
7
8
Gross Requirements
Scheduled
Receipts
Projected
Available Balance
Net
Requirements
Planned
Receipts
Planned Order
Releases
Week
1
2
3
4
5
6
7
8
Quantity Needed
0
0
0
35
75
65
80
85
Explanation / Answer
Item: Leg Assembly Lot Size: EOQ = 100
Description: Lead Time: 2 week
Week
1
2
3
4
5
6
7
8
Gross Requirements
35
75
65
80
85
Scheduled
Receipts
30
Projected
Available Balance
40
70
70
70
65
65
85
85
Net
Requirements
0
0
0
80
Planned
Receipts
105
165
Planned Order
Releases
105
165
Item: Leg Assembly Lot Size: EOQ = 100
Description: Lead Time: 2 week
Week
1
2
3
4
5
6
7
8
Gross Requirements
35
75
65
80
85
Scheduled
Receipts
30
Projected
Available Balance
40
70
70
70
65
65
85
85
Net
Requirements
0
0
0
80
Planned
Receipts
105
165
Planned Order
Releases
105
165
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