A manufacturing company wants to verify the output of their newly acquired MRP s
ID: 465179 • Letter: A
Question
A manufacturing company wants to verify the output of their newly acquired MRP software by comparing the computer output with their hand-calculated first ROP for each item in their BOM. They are examining output from their daily April 30 MRP.
LT=lead time
Qd=lot size discipline
SS=safety stock
GR=Gross Requirements
SR=Scheduled Receipts
PBS=Projected Stock Balance
POR=Planned Order Release
Master Production Schedule: Date, May 1 2 3 4 5
End-Item 23 51 16 21 30
Inventory Records File: Item End-Item A-Item B-Item C-Item
LT= 1 1 2 1
SS= 8 10 15 15
Qd= LFL 3 6+ 10+
BI= 115 80 23 47
SR= none 30 on May 1 none 10 on May 1
Question 5. What is the correct inventory policy?
(A) Item May 1 May 2 May 3 May 4 May 5
End-Item 0 0 4 30 0
A-Item 0 4 0 0 0
B-Item 6 88 0 0 0
C-Item 0 0 26 0 0
(B) Item May 1 May 2 May 3 May 4 May 5
End-Item 0 0 4 30 0
A-Item 0 6 0 0 0
B-Item 6 88 0 0 0
C-Item 0 0 26 0 0
(C) Item May 1 May 2 May 3 May 4 May 5
End-Item 0 0 4 30 0
A-Item 0 4 0 0 0
B-Item 4 90 0 0 0
C-Item 0 0 26 0 0
(D) Item May 1 May 2 May 3 May 4 May 5
End-Item 0 0 34 0 0
A-Item 0 6 0 0 0
B-Item 94 0 0 0 0
C-Item 0 0 26 0 0
(E) none of the above
Explanation / Answer
(D)
Net Requirement of End-Item = 23+51+16+21+30-115+8 = 34 . Requirement is on 5-May. Order needs to be released on 4-May, considering the lead time of 1 day
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