Company X produces an end product Afor the market. One unit of Ais made by assembling...

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General Management

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.

Week12345678
Forecast80705070806590100
Customer orders(committed)85203020
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.

Week12345678
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

Answer & Explanation Solved by verified expert
4.4 Ratings (652 Votes)
Determine MPS quantityMPS quantity is ordered when projected onhand inventory beforeplacing MPS falls below 0 units negativeAvailable Previous available inventory MPS MaximumForecast OrderFor week 1 POH 180 0 85 95For week 2 POH 95 0 70 25For week 3 POH 25 0 50 250 Place MPS 200 units inweek 3For week 3 projected onhand    See Answer
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