Scribd
Upload
48 views

Analytics Exercise 9-1

This document discusses inventory management and material requirement planning (MRP) for an engine assembly company. It provides the company's engine assembly master schedule for 12 weeks. It then shows the calculations for an MRP for gear boxes and input shafts based on the schedule, taking into account beginning inventory levels, scheduled receipts, lead times, gross requirements, projected available balances, and net requirements across each of the 12 weeks. The MRP was created using an Excel workbook to help the company efficiently meet market demand and increase profits.

Uploaded by

Kashém
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
48 views

Analytics Exercise 9-1

This document discusses inventory management and material requirement planning (MRP) for an engine assembly company. It provides the company's engine assembly master schedule for 12 weeks. It then shows the calculations for an MRP for gear boxes and input shafts based on the schedule, taking into account beginning inventory levels, scheduled receipts, lead times, gross requirements, projected available balances, and net requirements across each of the 12 weeks. The MRP was created using an Excel workbook to help the company efficiently meet market demand and increase profits.

Uploaded by

Kashém
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Running Head: INVENTORY MANAGEMENT

Inventory Managemennt

Name.

Institutional Affiliation.

Date.
INVENTORY MANAGEMENT 2

Companies should make a MRP, that is, the Material Requirement Plan to efficiently

tackle the market demand in order to make more profits. The Engine Assembly plan was as

follows:

Engine Assembly Master Schedule


Week 1 2 3 4 5 6 7 8 9 10 11 12
Quantity 15 5 7 10 15 20 10 8 2 16

The master schedule as indicated shows that:

I Engine=1 Gearbox

1 Gearbox=1 Shaft

For the gear box, the beginning inventory for the gearbox in week one was 17 gear boxes. The

scheduled receipts in week two was 5, with a lead time of 2 weeks. For the input shafts, the

beginning inventory was 40 input shafts. The scheduling receipts in the second week was 22,

with a lead time of three weeks. Calculations were done using excel workbook. The following

were the results for the MRP.


INVENTORY MANAGEMENT 3

Gear box requirements


Week 1 2 3 4 5 6 7 8 9 10 11 12
Gross Requirements 15 5 7 10 0 15 20 10 0 8 2 16
Scheduled Receipts 5
Projected Available Balance 2 2 10 0 0 15 -5 0 0 18 16 0
Net Requirements 5 10 15 20 10 8 2 16
Planned Order Receipt
Planned Order Release 5 10 15 20 10 8 2 16
From E12 for 2 Weeks Lead Time

Input shaft requirements


Week 1 2 3 4 5 6 7 8 9 10 11 12
Gross Requirements 30 30 40 20 0 16 4 32
Scheduled Receipts 22
Projected Available Balance 10 32 32 0 0 0 0 0 0 0 0 0
Net Requirements 38 20 16 4 32
Planned Order Receipt
Planned Order Release 38 20 16 4 32
From F24 for 3 Weeks Lead Time

Starting with the gearbox, the gross requirements for this particular item was obtained

directly from the demand corresponding the week. For example, in week five, there was no

demand, hence the gross requirement was zero at that particular week. However, for the input

shafts, the gross requirement was obtained by:

¿ Lead time∗planned order release ( Gear box )

¿ 2∗planned order release ( Gear box )

The net requirement was obtained by subtracting the projected available balance from the gross

requirement in both items.

You might also like