Question

In: Operations Management

Which of the follwoing for a-j is true? The following information is available for an MRP...

Which of the follwoing for a-j is true? The following information is available for an MRP problem. The BOM file shows that Product A is made of one unit of Part B, two units of Part C, and three units of Part D. Part C is made of two units of Part E and three units of Part F. Checking the correct statements results in earning credits, while checking incorrect statements results in losing a half of a correct statement.

Item

Quantity (in millions)

Lead Time (periods)

A

4

1

B

5

5

C

2

2

D

3

4

E

4

3

F

20

2

The Master Production Schedule requirements for the finished product are as follows (in millions):

Period

p1

p2

p3

p4

p5

p6

p7

p8

p9

p10

A

0

0

0

0

0

1

4

8

4

6

a.

net requirement for B in period 8 is 6.

b.

planned order releases for F in period 2 is 0.

c.

on hand inventory for F in period 4 is 0.

d.

net requirement for E in period 5 is 28.

e.

gross requirement for B in period 7 is not 11.

f.

net requirement for F in period 7 is not 24.

g.

planned order release for D in period 3 is not 12.

h.

the BOM structure has 2 levels.

i.

on hand inventory for C in period 5 is 2.

j.

gross requirement for E in period 6 is 24.

Solutions

Expert Solution

Answer:

a) False, net requirement of B in period 8 is 4.

b) True, planned order releases for F in period 2 is 0.

c) False, on hand inventory for F in period 4 is not 0.

       (On hand inventory for F in period 4 = 20)

d) True, net requirement of E in period 5 is 28.

e) True, gross requirement of B in period 7 is not 11.

     (Gross requirement of B in period 7 = 8)

f) True, net requirement for F in period 7 is not 24

g) True, planned order releases for D in period 3 is not 12.

h) False, the BOM structure does not have 2 levels.

    (The BOM structure has 3 levels.

Level 1= A, Level 2 = B, C, and D, Level 3 = E and F)

i) True, on hand inventory for c in period % is 2.

j) False, gross requirement for E in period 6 is not 24.

  (Gross requirement for E in period 6 = 16)

Item A

1

2

3

4

5

6

7

8

9

10

Gross req.

0

0

0

0

0

1

4

8

4

6

On hand

4

4

4

4

4

3

Net req.

1

8

4

6

Planned order release

1

8

4

6

Item B

1

2

3

4

5

6

7

8

9

10

Gross req.

1

8

4

6

On hand

5

5

5

5

5

4

Net req.

4

4

6

Planned order release

4

4

6

Item C

1

2

3

4

5

6

7

8

9

10

Gross req.

2

16

8

12

On hand

2

2

2

2

2

Net req.

16

8

12

Planned order release

16

8

12

Item D

1

2

3

4

5

6

7

8

9

10

Gross req.

3

24

12

18

On hand

3

3

3

3

3

Net req.

24

12

18

Planned order release

24

12

18

Item E

1

2

3

4

5

6

7

8

9

10

Gross req.

32

16

24

On hand

4

4

4

4

4

Net req.

28

16

24

Planned order release

28

16

24

Item F

1

2

3

4

5

6

7

8

9

10

Gross req.

12

48

24

36

On hand

20

20

20

20

8

Net req.

40

24

36

Planned order release

40

24

36


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