Question

In: Operations Management

Part 6. [ Use Video-1, Video-2, Video-3, Video-4 under MRP heading. ] A manufacturing company wants...

Part 6. [ Use Video-1, Video-2, Video-3, Video-4 under MRP heading. ]

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

15

10

18

4

9

.

Inventory Records File:

Item

End-Item

A-Item

B-Item

C-Item

LT=

1

1

2

1

SS=

12

15

20

30

Qd=

LFL

4

6+

12+

BI=

50

36

45

52

SR=

none

20 on May 1

none

12 on May 1

Question 10. What is the correct inventory policy?

(A)

Item

May 1

May 2

May 3

May 4

May 5

End-Item

0

5

4

9

0

A-Item

7

0

0

0

0

B-Item

6

23

0

0

0

C-Item

0

0

12

0

0

(B)

Item

May 1

May 2

May 3

May 4

May 5

End-Item

0

5

4

9

0

A-Item

0

7

0

0

0

B-Item

23

6

0

0

0

C-Item

0

0

12

0

0

(C)

Item

May 1

May 2

May 3

May 4

May 5

End-Item

0

5

4

9

0

A-Item

0

7

0

0

0

B-Item

6

23

0

0

0

C-Item

0

0

2

0

0

(D)

Item

May 1

May 2

May 3

May 4

May 5

End-Item

0

5

4

9

0

A-Item

0

7

0

0

0

B-Item

6

23

0

0

0

C-Item

0

0

12

0

0

(E) none of the above

Solutions

Expert Solution

--------------------

ANSWER:  (D)

(D)

Item

May 1

May 2

May 3

May 4

May 5

End-Item

0

5

4

9

0

A-Item

0

7

0

0

0

B-Item

6

23

0

0

0

C-Item

0

0

12

0

0


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