Question

Question 3

1. Wilton Technologies wishes to use MRP methodology to developing a material requirements plan for the next nine weeks. Williston Technologies has gathered the following information to work with:

   Bill of Materials:

   Current Inventory Records:                           

   Inventory

                           Leadtime                                 Currently

   Part                  (in weeks)       Lotsize            On-hand

   A                     1                      Lot-for-Lot     50       

   B                     1                      75                    85                   

   C                     2                      30                    100                 

   D                     2                      50                    415     

   Master Production Schedule:

                                                               -Weeks-

               Part                  1          2          3          4          5          6          7          8          9         

   A                     0          50        100      100      250      0          200      0        50         

   Please use MRP methodology to develop a materials requirement plan for Williston Technologies.

   Which of the following is/are true about the Planned Order Releases you have calculated?

                 I. Exactly 100 of Part A should be ordered in Week 2.

                 II. Exactly 225 of Part B should be ordered in Week 5.

                 III. The Planned Order Releases for Part B and Part C are identical to each other.

   	a.	I and II
   	b.	II only
   	c.	I, II and III
   	d.	I only
   	e.	I and III

Answer 1

We can see that part A has a on hand inventory of 50 units at present. Their order policy is lot-for-lot. Now, given this, the 50 units will be used in the week 1 demand. This means that week 2 demand of 100 units need to be ordered. Given that lead time is 1, we have to order 100 units in week 1. Also then week 3’s 100 units need to be ordered in week 2. This makes the statement I correct.

1 unit of B is needed for 1 unit of A. In the week 7 there is no demand for A. This means there will be no order for part A in week 6. Given this, there will be no gross requirement for B in week 6. Since part B has a lead time of 1, we do not need to order anything on week 5. This makes state II incorrect.

Part B and part C are both direct level 1 dependency of part A. Since their lot sizes are different, they possibility could not have the same quantity in planned order release. This makes statement III incorrect

The best answer:

d. I only