1. What are the implications of not allocating material to a shop order after av

Question

1. What are the implications of not allocating material to a shop order after availability checking?

2. A toy manufacturing company has collected 10 periods of data for two of its toys, X and Y. Using the two data sets as gross requirements data, construct MRP time-phased records. Using Excel spreadsheet, create four time-phased records, two for each data set. For one case, use a lot size of 220 units, and for the other use an order quantity equal to the total net requirements for the next two periods. In all four records, start with a beginning inventory of 220 units and compute the average inventory level held over the 10 periods. What do the results mean?

(Questions based on chapter 6 of the book Manufacturing Planning and Control for Supply Chain Management. 6th edition)

Explanation / Answer

1. The implications involved in not allocating materials in a shop order after availability checking is that the same material may be used for another job. This may cause the operations to fail or to meet the desired result. Due to this the first contract will be unfulfilled and affect the organization because of not meeting the deadline of the first project.

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