Company X produces an end product Afor the market. One unit ofAis made by assembling 1 unit of K, 2 units of L, and 1 unit of M.One unit of K is made of 2 units of G and 3 units of H; one unit ofL is assembled using 1 unit of M and 2 units of N. Current on-handinventories for L and M are 130 and 60, respectively. Scheduledreceipts are 300 for L at the beginning of week 1 and 150 for M atthe beginning of week 2.
Lead times for K and L are one week, and lead times for othercomponents are two weeks. The final assembly time for A is oneweek.
1. Fill in Table 1 to prepare a master production schedule for endproduct Ausing a fixed lot size of 200. The beginning inventory forA is 180; the forecast and committed customer orders
for A are provided in this table.
Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Forecast | 80 | 70 | 50 | 70 | 80 | 65 | 90 | 100 |
Customer orders(committed) | 85 | 20 | 30 | 20 | | | | |
Projected on-handinventory | | | | | | | | |
MPS Receipt | | | | | | | | |
MPS Start | | | | | | | | |
Available-to-promise inventory(uncommitted) | | | | | | | | |
Table 1: MPS table for end product A in Question 1
b. Construct the product structure tree (i.e., the BOM chart)for A.
c. Use your master production schedule in Table 1 to develop amaterial requirement plan (MRP) for the subassembly L using thelot-for-lot policy.
Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
MPS Start for A | | | | | | | | |
L | Lead time: 1 week; On hand 130; Scheduled Receipt in week 1: 300 |
Gross Requirement | | | | | | | | |
Scheduled Receipts | | | | | | | | |
Projected On Hand | | | | | | | | |
Net Requirement | | | | | | | | |
PO Receipts | | | | | | | | |
PO Releases | | | | | | | | |
Thanks very much