Question

In: Operations Management

The following information is available for an MRP problem. The BOM file shows that Product A...

The following information is available for an MRP problem. The BOM file shows that Product A is made of three units of Part B and one unit of Part C. Part C is made of four units of Part D, three units of Part E, and two 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

5

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

Period

1

2

3

4

5

6

7

8

9

10

A

0

0

0

0

0

1

4

8

4

6

a.

net requirement for E in period 5 is 17.

b.

gross requirement for B in period 7 is not 18.

c.

net requirement for B in period 8 is 22.

d.

net requirement for F in period 7 is not 15.

e.

on hand inventory for C in period 6 is 1.

f.

planned order releases for F in period 2 is 12.

g.

the BOM structure has 4 levels.

h.

on hand inventory for F in period 5 is 0.

i.

planned order release for D in period 3 is not 24.

j.

gross requirement for E in period 6 is 1.

Solutions

Expert Solution

Solution :

Following statements are true :

A : net requirement for E in period 5 is 17.

B : gross requirement for B in period 7 is not 18.

D : net requirement for F in period 7 is not 15.

E : on hand inventory for C in period 6 is 1.

F : planned order releases for F in period 2 is 12.

I : planned order release for D in period 3 is not 24.

A, LT - 1 On Hand 1 2 3 4 5 6 7 8 9 10 Total
Gross Requirements 0 0 0 0 0 1 4 8 4 6 23
Scheduled Receipts 0 0 0 0 0 0 0 0 0 0
Projected On Hand 4 4 4 4 4 4 3 0 0 0 0
Net requirements 0 0 0 0 0 0 1 8 4 6
Planned order receipts 0 0 0 0 0 0 1 8 4 6
Planned order releases 0 0 0 0 0 1 8 4 6 0
B, LT - 5 On Hand 1 2 3 4 5 6 7 8 9 10 Total
Gross Requirements 0 0 0 0 0 3 24 12 18 0 57
Scheduled Receipts 0 0 0 0 0 0 0 0 0 0
Projected On Hand 5 5 5 5 5 5 2 0 0 0 0
Net requirements 0 0 0 0 0 0 22 12 18 0
Planned order receipts 0 0 0 0 0 0 22 12 18 0
Planned order releases 0 22 12 18 0 0 0 0 0 0
C, LT - 2 On Hand 1 2 3 4 5 6 7 8 9 10 Total
Gross Requirements 0 0 0 0 0 1 8 4 6 0 19
Scheduled Receipts 0 0 0 0 0 0 0 0 0 0
Projected On Hand 2 2 2 2 2 2 1 0 0 0 0
Net requirements 0 0 0 0 0 0 7 4 6 0
Planned order receipts 0 0 0 0 0 0 7 4 6 0
Planned order releases 0 0 0 0 7 4 6 0 0 0
D, LT - 4 On Hand 1 2 3 4 5 6 7 8 9 10 Total
Gross Requirements 0 0 0 0 21 12 18 0 0 0 51
Scheduled Receipts 0 0 0 0 0 0 0 0 0 0
Projected On Hand 3 3 3 3 3 0 0 0 0 0 0
Net requirements 0 0 0 0 18 12 18 0 0 0
Planned order receipts 0 0 0 0 18 12 18 0 0 0
Planned order releases 18 12 18 0 0 0 0 0 0 0
E, LT - 3 On Hand 1 2 3 4 5 6 7 8 9 10 Total
Gross Requirements 0 0 0 0 21 12 18 0 0 0 51
Scheduled Receipts 0 0 0 0 0 0 0 0 0 0
Projected On Hand 4 4 4 4 4 0 0 0 0 0 0
Net requirements 0 0 0 0 17 12 18 0 0 0
Planned order receipts 0 0 0 0 17 12 18 0 0 0
Planned order releases 0 17 12 18 0 0 0 0 0 0
F, LT - 5 On Hand 1 2 3 4 5 6 7 8 9 10 Total
Gross Requirements 0 0 0 0 14 8 12 0 0 0 34
Scheduled Receipts 0 0 0 0 0 0 0 0 0 0
Projected On Hand 20 20 20 20 20 6 0 0 0 0 0
Net requirements 0 0 0 0 0 2 12 0 0 0
Planned order receipts 0 0 0 0 0 2 12 0 0 0
Planned order releases 2 12 0 0 0 0 0 0 0 0

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