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    Analytics Exercise 9-1

    Uploaded by

    Kashém
    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.

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    Download as DOCX, PDF, TXT or read online from Scribd

    Analytics Exercise 9-1

    Uploaded by

    Kashém
    43 views3 pages
    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.

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    Analytics Exercise 9-1.docx

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    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.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    43 views3 pages

    Analytics Exercise 9-1

    Uploaded by

    Kashém
    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.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 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.

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