Production Mangement

ASSIGNMENT

Notes: All students have to submit this assignment

- Group 3: Wed., Dec., 04, 2019

- Group 4: Sat., Dec., 07, 2019.

Develop MRP matrix

Exercise 1: Product A is made according to the bill of materials diagram shown below. Fifty as
are needed in week 3, 250 in week 5, and 150 in week 7. Product A has a lead-time of one week.

The table below shows additional data (master file) for the items B, C, and D.

B C D
Lot size L4L 800 L4L
Lead-time 2 1 1
Beginning inventory 0 120 50
Scheduled receipts 100 week 2 300 week 2 none

Exercise 2:

Product A is made according to the bill of materials diagram shown below; 200 units of A are
needed in week 5; 300 in week 8. Product A lead-time = 1 week.
 Production Mangement

The table below shows additional data for the items B, C, D, and E.

B C D E
Lot size L4L L4L 500 900
Lead-time 2 3 1 2
Beginning inventory 0 0 200 500
Scheduled receipts none none 500 week 2 none

Exercise 3:

Products A and B are made according to the bill of materials diagram shown below. Scheduled
quantities of the end products are, for A, 95 units in week 4, 150 units in week 6, and 130 units
in week 8, and for B, 80 units in week 3, 70 units in week 6. Lead-times: A = 2 weeks, B = 1
week.
 Production Mangement

The table below shows additional data for the items C, D, and E.

C D E
Lot size 250 800 L4L
Lead-time 2 1 3
Beginning inventory 625 350 85
Scheduled receipts none none 200 week 2

Exercise 4:

There are for 103 units of product A in period 8 and 200 units of product Q in period 7.
The on hand inventory levels for each item are A = 18, Q =6, B = 10, C = 20, D = 0 and E =
30. A safety stock of five units is maintained on product A and six on units of product Q
with no safety stock on other components. Additionally, ten units of 18 units on hand of
product A are already allocated to particular customers. There are no open orders
(scheduled receipts) on any item. The lot size for items A, Q, B, and C is the same as the net
requirements (lot-for-lot ordering), while the lot size for D is 200 units and for E is 500
units.
 Production Mangement

Develop an MRP for product A and Q with the product structures (BOM) given below. What
should be the size of the orders for each item, and when should orders released?

Exercise 5:

The Alpha Beta Company produces two products; A and B, that are made from components C
and D. Given the following product structures, master scheduling requirements, and inventory
information, determine when orders should be released for A, B, C, and D and the size of those
orders
 Production Mangement

Exercise 6:

Files and More, Inc. (F&M), a manufacturer of office equipment, uses MRP to schedule its
production. Because of the current recession and the need to cut costs, F&M has targeted
inventory as a prime area for cost reduction. However, the company does not want to reduce its
customer service level in the process. Demand and inventory data for a two-drawer file cabinet
are given in the following table. Complete an MRP matrix for the file cabinet using:
(a) L4L
(b) EOQ
(c) POQ lot sizing.
Which lot-sizing rule do you recommend?

Lead time = 1 period

Holding cost = $1 per cabinet per period
Ordering cost = $100 per order
Beginning inventory = 25