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Production and Operations Management Material Requirements Planning Prince Daniels Mba, MSC and Business Studies Tutor

Material requirements planning

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57 views4 pages

Production and Operations Management Material Requirements Planning Prince Daniels Mba, MSC and Business Studies Tutor

Material requirements planning

Uploaded by

zuludennischibweya1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PRODUCTION AND OPERATIONS MANAGEMENT

MATERIAL REQUIREMENTS PLANNING

PRINCE DANIELS MBA, MSC AND BUSINESS STUDIES TUTOR

1
QUESTION ONE

David Mulenga decided to pursue his boyhood dream of owning a bike factory. After
several false starts, he finally got the small company up and running. The company
currently assembles two models David designed: the Arrow and the Dart. The
company hasn’t turned a profit yet, but David feels that once he resolves some of the
problems he’s having with inventory and scheduling, he can increase productivity and
reduce costs.
At first, he ordered enough bike parts and subassemblies for four months’ worth of
production. Parts were stacked all over the place, seriously reducing work space and
hampering movement of workers and materials. And no one knew exactly where anything
was. In David’s words, “It was a solid mess!”

He and his two partners eventually managed to work off most of the inventory. They hope
to avoid similar problems in the future by using a more orderly approach.
David’s first priority is to develop a materials requirement plan for upcoming periods. He
wants to assemble 15 Arrows and 10 Darts each week, to have them ready at the start
of weeks 4 through 8. The product structure trees for the two bikes follow.

Arrow
Arrow

X M W K (2) F

F
W (2) Q
One of David’s partners, Ann, has organized information on lead times, inventory on hand,
and lot-sizing rules (established by suppliers):

2
Item Lead On Lot-Sizing Rule
Time(weeks) Hand
Arrow 2 5 Lot-for-lot
Dart 2 2 Lot-for-lot
X 1 5 Multiples of 25
W 2* 2 Multiples of 12
F 1 10 Multiples of 30
K 1 3 Lot-for-lot
Q 1 15 Multiples of 30
M 1 0 Lot-for-lot

*LT = 3 weeks for orders of 36 or more units on this item.

Scheduled receipts are:


Period 1: 20 Arrows and 18 Ws
Period 2: 20 Darts and 15 Fs
As the third partner, it is your job to develop the material requirements plan.

QUESTION TWO

A company manufactures two products A and B. Each A requires two C’s and one D.
Each D requires two F’s and one E, while each E requires one F. Each product B
requires one D and two E’s. The table below shows data from the inventory records.

DATA IT EM
CATEGORY C D E F
Lot-Sizing Fixed Order Fixed Order Period Order
Lot for Lot
Rule Quantity = 220 Quantity = 300 Quantity P = 2
Lead Time 3 weeks 2 weeks 3 weeks 2 weeks
Scheduled
280 (week 1) None 300 (week 3) None
Receipts
Beginning
25 0 150 600
Inventory

The MPS for product A calls for 85 units to be started in week 3 and 100 units to be
started in week 6. The MPS for product B calls for 180 units to be started in week 5.

Develop the material requirements plan (showing Gross requirements, Scheduled


receipts, On hand inventory, Net requirements, and Planned-order release) for the
next six weeks for items C, D, E and F.

3
“But those who wait on the Lord shall renew their strength. They shall mount up with

wings like eagles, they shall run and not be weary, they shall walk and not faint.” (Isaiah

40:31 NKJV).

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