LOG713 Models for Production Management

Exercises Week 38

Note that Problem 1 will be part of Assignment 1, which is mandatory.

Problem 2 is from the exam of Summer 2016, and is not mandatory.

Problem 1

A B

C D(2) D E(2)

Figure 1: Product tree

Given the product tree shown in Figure 1, complete the MRP records
given in Table 1. Numbers in parentheses represent quantities, so we for
example need one C and two Ds to make one A. Lead times, lot sizes, gross
requirements for parts A and B, scheduled receipts and current inventory
levels are given in Table 1.

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 Table 1: MRP Data

Part Week 1 2 3 4 5
A Gross requirements 20 50 60 40 70
Scheduled receipts 20
LT: 1 week Projected available
Net requirements
Lot-for-lot Planned order receipt
Planned order release
B Gross requirements 80 80 30 100 60
Scheduled receipts 200
LT: 1 week Projected available
Net requirements
Lot size: 200 Planned order receipt
Planned order release
C Gross requirements
Scheduled receipts 100
LT: 2 weeks Projected available 100
Net requirements
Lot size: 100 Planned order receipt
Planned order release
D Gross requirements
Scheduled receipts 300
LT: 2 weeks Projected available 180
Net requirements
Lot size: 300 Planned order receipt
Planned order release
E Gross requirements
Scheduled receipts
LT: 1 week Projected available
Net requirements
Lot-for-lot Planned order receipt
Planned order release

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Problem 2
Bottlenecks play an important role in optimized production technology (OPT)
and theory of constraints (TOC), and several principles for how to deal with
bottlenecks exist.

a) Explain the principle “Time saved at a non-bottleneck saves the system

nothing”.

b) Explain the terms: drum, buffer, rope.

c) Explain the difference between the two strategies: push and pull.