Develop a complete net material requirements plan for the production of followin
ID: 463133 • Letter: D
Question
Develop a complete net material requirements plan for the production of following MPS and prepare the “exceptions” report. Must be achieved without using excel, a partial solution is avaliable for your assistance, solve for total cost.
L-4-L
EOQ
POQ
Total cost =
2475.00
3704.05
2325.00
Master production schedule
Week:
1
2
3
4
5
6
MPS for A
200
100
200
200
MPS for B
200
80
100
80
Data:
Item
Lead time
Available
Scheduled Receipts
C
2
750
400 in week #1, 300 in week #2
D
1
500
600 in week #1
E
3
2000
2000 in week #1, 2000 in week #2
Bill-of-Materials:
B
E1
D3
E2
Put the “exceptions” report here:
A
D2
E3
C3
E2
D3
E2
Item :
LT =
GR =
Week:
1
2
3
4
5
6
Gross requirement
Scheduled receipts
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
Item :
LT =
GR =
Week:
1
2
3
4
5
6
Gross requirement
Scheduled receipts
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
Item :
LT =
GR =
Week:
1
2
3
4
5
6
Gross requirement
Scheduled receipts
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
Item :
LT =
GR =
Week:
1
2
3
4
5
6
Gross requirement
Scheduled receipts
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
Given setup cost of $350 per setup and holding cost of $2.50 per unit per week, develop lot sizes (a) Lot-for-lot, (b) EOQ, and (c) POQ. Determine the total cost for each method. Use lead time of one week.
(a) Lot-for-lot
LT =
1
Week:
1
2
3
4
5
6
7
8
Gross requirement
100
110
120
140
110
120
130
150
Scheduled receipts
Projected on-hand
110
Net Requirement
Planned receipts
Planned order releases
Total ending inventory =
No. of setup =
Carrying cost =
Setup cost =
Total cost =
(b) EOQ
LT =
1
Week:
1
2
3
4
5
6
7
8
Gross requirement
100
110
120
140
110
120
130
150
Scheduled receipts
Projected on-hand
110
Net Requirement
Planned receipts
Planned order releases
Holding cost/week =
Setup cost/week =
Total cost/week =
Cost for 8 weeks =
(c) POQ
LT =
1
Week:
1
2
3
4
5
6
7
8
Gross requirement
100
110
120
140
110
120
130
150
Scheduled receipts
Projected on-hand
110
Net Requirement
Planned receipts
Planned order releases
Total ending inventory =
No. of setup =
Carrying cost =
Setup cost =
Total cost =
L-4-L
EOQ
POQ
Total cost =
2475.00
3704.05
2325.00
Explanation / Answer
Part 1
Period
-1
1
2
3
4
5
6
MPS for A
200
100
200
200
MPS for B
200
80
100
80
Item: C
OH = 750
LT = 2
Q =L4L
-1
1
2
3
4
5
6
Gross Req.
600
300
600
0
0
600
3 for A
Scheduled receipts
400
300
Projected-on-hand
750
550
550
150
150
150
0
Net Requirement
0
0
0
0
0
450
Planned order Receipts
450
Planned order releases
450
Item: D
OH = 500
LT = 1
Q = L4L
-1
1
2
3
4
5
6
Gross Req.
400
200
400
0
0
400
2 For A
0
0
0
1350
0
0
3 For C
0
600
240
300
240
0
3 For B
Scheduled receipts
600
0
0
0
0
0
Projected-on-hand
500
700
0
0
0
0
0
Net Requirement
0
100
640
1650
240
400
Planned order Receipts
0
100
640
1650
240
400
Planned order releases
100
640
1650
240
400
0
Item: E
OH = 2000
LT = 3
Q =L4L
-1
1
2
3
4
5
6
Gross Req.
200
1280
3300
480
800
0
2 for D
600
300
600
0
0
600
3 for A
0
200
80
100
80
0
1 for B
Scheduled receipts
2000
2000
0
0
0
0
Projected-on-hand
2000
3200
3420
0
0
0
Net Requirement
0
0
560
480
800
600
Planned order Receipts
0
0
560
480
800
600
Planned order releases
560
480
800
600
0
0
0
Part 2
Given setup cost of $350 per setup and holding cost of $2.50 per unit per week, develop lot sizes (a) Lot-for-lot, (b) EOQ, and (c) POQ. Determine the total cost for each method. Use lead time of one week.
S = Setup cost = $350
H = Holding cost = $2.5 per unit per week
a) Lot-for-lot
LT =
1
Week:
1
2
3
4
5
6
7
8
Gross requirement
100
110
120
140
110
120
130
150
Scheduled receipts
0
Projected on-hand
110
10
0
0
0
0
0
0
0
Net Requirement
0
100
120
140
110
120
130
150
Planned receipts
0
100
120
140
110
120
130
150
Planned order releases
100
120
140
110
120
130
150
0
Total ending inventory =
10
No. of setup =
7
Carrying cost =
$2.5 x 10 = $25.00
Setup cost =
$350 x 7 = $2,450.00
Total cost =
$25 + $2450 = $2,475.00
Average demand = A = (100+110+120+140+110+120+130+150)/8 = 122.5 units
EOQ = Q* = sqrt{ rac{2*A*S}{H}}
Q* = sqrt{ rac{2*122.5*350}{2.5}}
Q* = 185
EOQ
Q = 185
LT =
1
Week:
1
2
3
4
5
6
7
8
Gross requirement
100
110
120
140
110
120
130
150
Scheduled receipts
0
Projected on-hand
110
10
85
150
10
85
150
20
55
Net Requirement
0
100
35
0
100
35
0
130
Planned receipts
0
185
185
0
185
185
0
185
Planned order releases
185
185
0
185
185
0
185
0
Total ending inventory =
565
No. of setup =
5
Carrying cost =
$2.65 x 565 = $1,412.50
Setup cost =
$350 x 5 = $1,750.00
Total cost =
$3,162.50
POQ = EOQ/Average Demand = 185/122.5 = 1.51 ~ 2 weeks
POQ
2 weeks
LT =
1
Week:
1
2
3
4
5
6
7
8
Gross requirement
100
110
120
140
110
120
130
150
Scheduled receipts
0
Projected on-hand
110
10
120
0
110
0
130
0
0
Net Requirement
0
100
0
140
0
120
0
150
Planned receipts
0
220
0
250
0
250
0
150
Planned order releases
220
0
250
0
250
0
150
0
Total ending inventory =
370
No. of setup =
4
Carrying cost =
$2.5 x 370 = $925.00
Setup cost =
$350 x 4 = $1,400.00
Total cost =
$2,325.00
Period
-1
1
2
3
4
5
6
MPS for A
200
100
200
200
MPS for B
200
80
100
80
Item: C
OH = 750
LT = 2
Q =L4L
-1
1
2
3
4
5
6
Gross Req.
600
300
600
0
0
600
3 for A
Scheduled receipts
400
300
Projected-on-hand
750
550
550
150
150
150
0
Net Requirement
0
0
0
0
0
450
Planned order Receipts
450
Planned order releases
450
Item: D
OH = 500
LT = 1
Q = L4L
-1
1
2
3
4
5
6
Gross Req.
400
200
400
0
0
400
2 For A
0
0
0
1350
0
0
3 For C
0
600
240
300
240
0
3 For B
Scheduled receipts
600
0
0
0
0
0
Projected-on-hand
500
700
0
0
0
0
0
Net Requirement
0
100
640
1650
240
400
Planned order Receipts
0
100
640
1650
240
400
Planned order releases
100
640
1650
240
400
0
Item: E
OH = 2000
LT = 3
Q =L4L
-1
1
2
3
4
5
6
Gross Req.
200
1280
3300
480
800
0
2 for D
600
300
600
0
0
600
3 for A
0
200
80
100
80
0
1 for B
Scheduled receipts
2000
2000
0
0
0
0
Projected-on-hand
2000
3200
3420
0
0
0
Net Requirement
0
0
560
480
800
600
Planned order Receipts
0
0
560
480
800
600
Planned order releases
560
480
800
600
0
0
0
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.