Principles of Logistics and supply chain management

ASSIGNMENT 2

APP AND MRP

Exercise 1

Company X currently has 150 workers. Company has to work 20 working days per month and 8 hour per
day. The company want to develop aggregate planning by using forecasting demand and costs as belows:

Month 1 2 3 4 5 6

Forecasting demand 4500 5500 24000 30000 46000 10000

There are associated costs for    

Spare transport that is not used 2 $/unit

Shortage of transport 50 $/unit

Cost of moving to this function from other jobs 1000 $/employee

Cost of moving an employee from this function to other jobs 700 $/employee

Number of employee 150 Employees

Number of unit per employee 50 Units

Regular-time cost of employee 4 $/hour

The company is confusing between two strategies for their aggregate planning Level strategy, Chase
strategy

Exercise 2:

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.
 Principles of Logistics and supply chain management

The table below shows additional data 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 3: 

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.
 Principles of Logistics and supply chain management

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

 Exercise4: 

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. 
 Principles of Logistics and supply chain management

 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:

A Corporation assembles two products as shown in the product structures below. It has
orders for 480 on period 8 and 100 units on period 9 of product X.. Develop the MRP
table for each of the item.

Item Amount on hand Schedule receipts Lot-sizing rule

X 180 0 L4L
A 100 0 Periodic order
quantity (2 weeks)
B 50 0 100
C 50 0 200
D 50 0 400

X
LT = 2

A (2) B (1) C (3) D (1)

LT = 2 LT = 2 LT = 1 LT = 3

D (2)
LT =2
Principles of Logistics and supply chain management

Y
LT = 1

A (4) D (1)
LT = 2 LT = 2