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1. Semans is a manufacturer that produces clamp assemblies.

The demand for clamp


assemblies (X) is 130 units. The staggered BOM is given below:

The table below indicates inventory levels:

a) Using Excel, create the MRP with the staged bill of materials (BOM).
b) Determine the net needs of each piece.

NEEDS
x 105
TO 504
b 200
c 370
d 600
AND 100
F 560
g 680

PART TYPE x GROSS NEEDS 130


LOT SIZE ENT. SCHEDULED
WAIT TIME AVAILABLE BALANCE
STOCK 25 NET NEEDS 105
INV. SEC. ENT. ORDERS
ORDERS EXPEDITION
PART TYPE TO GROSS NEEDS 420
LOT SIZE ENT. SCHEDULED
WAIT TIME AVAILABLE BALANCE
STOCK 16 NET NEEDS 404
INV. SEC. ENT. ORDERS
ORDERS EXPEDITION

PART TYPE b GROSS NEEDS 210


LOT SIZE ENT. SCHEDULED
WAIT TIME AVAILABLE BALANCE
STOCK 60 NET NEEDS 150
INV. SEC. ENT. ORDERS
ORDERS EXPEDITION
PART TYPE d GROSS NEEDS 450
LOT SIZE ENT. SCHEDULED
WAIT TIME AVAILABLE BALANCE
STOCK 180 NET NEEDS 270
INV. SEC. ENT. ORDERS
ORDERS EXPEDITION
PART TYPE AND GROSS NEEDS 150
LOT SIZE ENT. SCHEDULED
WAIT TIME AVAILABLE BALANCE 10
STOCK 160 NET NEEDS 0
INV. SEC. ENT. ORDERS
ORDERS EXPEDITION
PART TYPE c GROSS NEEDS 315
LOT SIZE ENT. SCHEDULED
WAIT TIME AVAILABLE BALANCE
STOCK 20 NET NEEDS 295
INV. SEC. ENT. ORDERS
ORDERS EXPEDITION
PART TYPE F GROSS NEEDS 1180
LOT SIZE ENT. SCHEDULED
WAIT TIME AVAILABLE BALANCE
STOCK 1000 NET NEEDS 180
INV. SEC. ENT. ORDERS
ORDERS EXPEDITION
PART TYPE g GROSS NEEDS 590
LOT SIZE ENT. SCHEDULED
WAIT TIME AVAILABLE BALANCE
STOCK 100 NET NEEDS 490
INV. SEC. ENT. ORDERS
ORDERS EXPEDITION

2. In the following MRP planning schedule for part J, indicate the correct net requirements,
planned order entries, and planned order dispatch to meet the gross requirements. The
delay time is one week.
WEEKS 0 1 2 3 4 5
PART TYPE Comp J GROSS NEEDS 75 50 70
LOT SIZE ENT. SCHEDULED
WAIT TIME 1 week AVAILABLE BALANCE 40 40 0 0 0 0
STOCK 40 NET NEEDS 35 50 70
INV. SEC. ENT. ORDERS 35 50 70
ORDERS EXPEDITION 35 50 70

3. Suppose that the product Z is obtained from two units of A and four units of B. A is
obtained from three units of C and four of D. D is obtained from two units of E.
The delay times for the purchase or manufacture of each unit for final assembly are: Z
takes two weeks, A, B, C and D take one week each, and E takes three weeks.
In period 10, 50 units are needed (assume that no parts are currently in stock).
a) Present the list of materials (product structural tree).
b) Prepare an MRP planning program showing gross and net requirements and order
entry and shipping dates.

Z 2 SEM
ABCD 1 SEM
E 3 SEM

WEEKS 1 2 3 4 5 6 7 8 9 10
PART TYPE Z GROSS NEEDS 50
LOT SIZE ENT. SCHEDULED
WAIT TIME two AVAILABLE BALANCE 0 0 0 0 0 0 0 0 0 0
weeks
STOCK NET NEEDS 50
INV. SEC. ENT. ORDERS 50
ORDERS EXPEDITION 50
WEEKS 1 2 3 4 5 6 7 8 9 10
PART TYPE TO GROSS NEEDS 100
LOT SIZE ENT. SCHEDULED
WAIT TIME 1 week AVAILABLE BALANCE 0 0 0 0 0 0 0 0
STOCK NET NEEDS 100
INV. SEC. ENT. ORDERS 100
ORDERS EXPEDITION 10
0

WEEKS 1 2 3 4 5 6 7 8 9 10
PART TYPE b GROSS NEEDS 20
0
LOT SIZE ENT. SCHEDULED
WAIT TIME 1 week AVAILABLE BALANCE 0 0 0 0 0 0 0 0
STOCK NET NEEDS 20
0
INV. SEC. ENT. ORDERS 20
0
ORDERS EXPEDITION 200
WEEKS 1 2 3 4 5 6 7 8 9 10
PART TYPE c GROSS NEEDS 300
LOT SIZE ENT. SCHEDULED
WAIT TIME 1 week AVAILABLE BALANCE 0 0 0 0 0 0 0
STOCK NET NEEDS 300
INV. SEC. ENT. ORDERS 300
ORDERS EXPEDITION 300
WEEKS 1 2 3 4 5 6 7 8 9 10
PART TYPE d GROSS NEEDS 400
LOT SIZE ENT. SCHEDULED
WAIT TIME 1 week AVAILABLE BALANCE 0 0 0 0 0 0 0
STOCK NET NEEDS 400
INV. SEC. ENT. ORDERS 400
ORDERS EXPEDITION 400

WEEKS 1 2 3 4 5 6 7 8 9 10
PART TYPE AND GROSS NEEDS 800
LOT SIZE ENT. SCHEDULED
WAIT TIME 3 week AVAILABLE BALANCE 0 0 0 0 0 0
STOCK NET NEEDS 800
INV. SEC. ENT. ORDERS 800
ORDERS EXPEDITION 800

4. Note: For problems 5 to 10, in order to simplify data management and include the entry
of orders from previous periods, the following six-level scheme can be used (in practice
different techniques are used, but the important thing is to keep track of what is in stock,
what is expected to arrive, what is needed and the size of orders to be placed). One way
to calculate the figures is as follows:

One unit of A is obtained from three units of B, one unit of C and two units of D. B
consists of two units of E and one unit of D. C is obtained from one unit of B and two
units of E. E is obtained from a unit of F.
Parts B, C, E and F have lead times of one week; A and D have lead times of two weeks.
Suppose that the lot-by-lot (L4L) technique is applied to determine the lot size of parts A,
B and F; lot sizes 50, 50, and 200 are used for parts C, D, and E, respectively. Parts C, E,
and F have (initial) stocks of 10, 50, and 150, respectively; the other parts have zero
starting stock. The entry of 10 units of A in week 2, 50 units of E in week 1 and 50 units
of F in week 1 is scheduled to enter. There are no more scheduled entries. If 30 units of A
are needed in week 8, use the lower-level coded BOM to find the planned order
shipments needed for all parts.
WEEKS 1 2 3 4 5 6 7 8
PART TYPE TO GROSS NEEDS 30
LOT SIZE ENT. SCHEDULED 10
WAIT TIME two AVAILABLE BALANCE 10 10 10 10 10 10 0
weeks
STOCK NET NEEDS 20
INV. SEC. ENT. ORDERS 20
ORDERS EXPEDITION 20

WEEKS 1 2 3 4 5 6 7 8
Part type c Gross needs 20
Lot size 50 Ent. Scheduled
Wait time 1 week Available balance 10 10 10 10 10 40 40 40
Stock 10 Net needs 10
Inv. Sec. Ent. Orders 50
Expedition orders 50
WEEKS 1 2 3 4 5 6 7 8
Part type b Gross needs 50 60
Lot size Ent. Scheduled
Wait time 1 week Available balance 0 0
Stock Net needs 50 60
Inv. Sec. Ent. Orders 50 60
Expedition orders 50 60
WEEKS 1 2 3 4 5 6 7 8
Part type d Gross needs 50 60 40
Lot size 50 Ent. Scheduled
Wait time two Available balance 0 40 0
weeks
Stock Net needs 50 60 0
Inv. Sec. Ent. Orders 50 100
Expedition orders 50 100
WEEKS 1 2 3 4 5 6 7 8
Part type AND Gross needs 100 220
Lot size 200 Ent. Scheduled 50
Wait time 1 week Available balance 100 100 100 0 180
Stock 50 Net needs 0 220
Inv. Sec. Ent. Orders 400
Expedition orders 400
WEEKS 1 2 3 4 5 6 7 8
Part type F Gross needs 400
Lot size Ent. Scheduled 50
Wait time 1 week Available balance 200 200 200 0
Stock 150 Net needs 200
Inv. Sec. Ent. Orders 200
Expedition orders 200

5. Unit A is obtained from two units of B, three units of C and two units of D. B consists of
one unit of E and two units of F. C is obtained from two units of F and one unit of D. E is
obtained from two units of D. Parts A, C, D and F have lead times of one week; B and E
have lead times of two weeks. The batch-by-batch (L4L) technique is applied to
determine the batch size of parts A, B, C and D; lot sizes of 50 and 180 are used for parts
E and F, respectively. Part C has (initial) stock of 15; D has stock of 50; the other parts
have zero starting stock. The entry of 20 units of part E is scheduled in week 2; There are
no more entries scheduled.
Prepare simple, bottom-level coding bills of materials (product structural trees) and step-
by-step summary parts lists.
If 20 units of A are needed in week 8, use the lower-level coded BOM to find the planned
order shipments needed for all components (see problem note 4).

Structured tree.

TO

B-2 C-3 D-2

E-1 F-2 F-2 D -1

D-2

Structured tree with lower level coding


Level Product
TO
0

B-2 C-3
1

E-1 F-2 F-2


2

D-2 D-1 D-2


3

WEEKS 1 2 3 4 5 6 7 8
PART TYPE TO GROSS NEEDS 20
LOT SIZE ENT. SCHEDULED
WAIT TIME 1 week AVAILABLE BALANCE 0
STOCK NET NEEDS 20
INV. SEC. ENT. ORDERS 20
ORDERS EXPEDITION 20
WEEKS 1 2 3 4 5 6 7 8
PART TYPE b GROSS NEEDS 40
LOT SIZE ENT. SCHEDULED
WAIT TIME two AVAILABLE BALANCE
weeks
STOCK NET NEEDS 40
INV. SEC. ENT. ORDERS 40
ORDERS EXPEDITION 40
WEEKS 1 2 3 4 5 6 7 8
PART TYPE c GROSS NEEDS 60
LOT SIZE ENT. SCHEDULED
WAIT TIME 1 week AVAILABLE BALANCE 15 15 15 15 15 15 0
STOCK 15 NET NEEDS 45
INV. SEC. ENT. ORDERS 45
ORDERS EXPEDITION 45
WEEKS 1 2 3 4 5 6 7 8
PART TYPE AND GROSS NEEDS 40
LOT SIZE 50 ENT. SCHEDULED 20
WAIT TIME two AVAILABLE BALANCE 20 20 20 30
weeks
STOCK NET NEEDS 20
INV. SEC. ENT. ORDERS 50
ORDERS EXPEDITION 50
WEEKS 1 2 3 4 5 6 7 8
PART TYPE d GROSS NEEDS 100 45 40
LOT SIZE ENT. SCHEDULED
WAIT TIME 1 week AVAILABLE BALANCE 50 50 0 0 0 0 0
STOCK 50 NET NEEDS 50 45 40
INV. SEC. ENT. ORDERS 50 45 40
ORDERS EXPEDITION 50 45 40
WEEKS 1 2 3 4 5 6 7 8
PART TYPE F GROSS NEEDS 80 90
LOT SIZE 180 ENT. SCHEDULED
WAIT TIME 1 week AVAILABLE BALANCE 100 10
STOCK NET NEEDS 80 0
INV. SEC. ENT. ORDERS 180
ORDERS EXPEDITION 180

6. One unit of A is obtained from one unit of B and one unit of C. B is obtained from four
units of C and one unit of E and F. C is obtained from two units of D and one unit of E. E
is obtained from three units of F. Piece C has a delay time of one week; Parts A, B, E,
and F have lead times of two weeks, and part D has a lead time of three weeks. The
batch-by-batch technique is applied to determine the batch size of parts A, D and E; lot
sizes 50, 100, and 50 are used for parts B, C, and F, respectively. Parts A, C, D, and E
have (initial) stocks of 20, 50, 100, and 10, respectively; the others have zero starting
stock. The entry of 10 units of A is scheduled in week 1, 100 units of C in week 1 and
100 units of D in week 3; There are no more entries scheduled. If 50 units of A are
needed in week 10, use the BOM (product structural tree) with lower-level coding to find
the planned order shipments needed for all components (see problem note 4).
Leve
l Product
TO
0

B-1
1

C-4 C-1
2

E-1 D-2 E-1


3

F-3 F-1 F-3


4
1 2 3 4 5 6 7 8 9 10
Tipo de pieza A Necesidades brutas 50
Tamaño de lote Ent. Programadas 10
Tiempo de espera 2 semanas Saldo disponible 30 30 30 30 30 30 30 30 30 0
Existencias 20 Necesidades netas 20
Inv. Seg. Ent. Pedidos 20
Expedición pedidos 20

1 2 3 4 5 6 7 8 9 10
Tipo de pieza B Necesidades brutas 20
Tamaño de lote 50 Ent. Programadas
Tiempo de espera 2 semanas Saldo disponible 30
Existencias Necesidades netas 20
Inv. Seg. Ent. Pedidos 50
Expedición pedidos 50

1 2 3 4 5 6 7 8 9 10
Tipo de pieza C Necesidades brutas 200 20
Tamaño de lote 100 Ent. Programadas 100
Tiempo de espera 1 semanas Saldo disponible 150 150 150 150 150 50 50 30
Existencias 50 Necesidades netas 50 0
Inv. Seg. Ent. Pedidos 100
Expedición pedidos 100

1 2 3 4 5 6 7 8 9 10
Tipo de pieza D Necesidades brutas 200
Tamaño de lote Ent. Programadas 100
Tiempo de espera 3 semanas Saldo disponible 100 100 200 200 0
Existencias 100 Necesidades netas 0
Inv. Seg. Ent. Pedidos
Expedición pedidos

1 2 3 4 5 6 7 8 9 10
Tipo de pieza E Necesidades brutas 100 50
Tamaño de lote Ent. Programadas
Tiempo de espera 2 semanas Saldo disponible 10 10 10 10 0 0
Existencias 10 Necesidades netas 90 50
Inv. Seg. Ent. Pedidos 90 50
Expedición pedidos 90 50

1 2 3 4 5 6 7 8 9 10
Tipo de pieza F Necesidades brutas 270 150 50
Tamaño de lote 50 Ent. Programadas
Tiempo de espera 2 semanas Saldo disponible 30 30 30 30
Existencias Necesidades netas 270 120 20
Inv. Seg. Ent. Pedidos 300 150 50
Expedición pedidos 300 150 50
7. One unit of A is obtained from two units of B and one unit of C, B is obtained from three
units of D and one unit of F, C consists of three units of B and one unit of D and four
units of E. D is obtained from a unit of E. Piece C has a delay time of one week; parts A,
B, E and F have lead times of two weeks; and piece D has a lead time of three weeks. The
batch-by-batch technique is applied to determine the batch size of parts C, E and F; lot
sizes 20, 40, and 160 are used for parts A, B, and D, respectively. Parts A, B, D, and E
have starting stocks of 5, 10, 100, and 100, respectively; the others have zero starting
stock. The entry of 10 units of A is scheduled in week 3, 20 units of B in week 7, 40 units
of F in week 6 and 60 units of E in week 2; There are no more entries scheduled. If 20
units of A are needed in week 10, use the lower-level coded BOM to find the planned
order shipments needed for all components.

A (1)

B (2) C(1)

D (3) F (1) B (3) D (1) E (4)

E (1) E (1)
1 2 3 4 5 6 7 8 9 10
Tipo de pieza A Necesidades brutas 20
Tamaño de lote 20 Ent. Programadas 10
Tiempo de espera 2 semanas Saldo disponible 5 5 15 15 15 15 15 15 15 15
Existencias 5 Necesidades netas 5
Inv. Seg. Ent. Pedidos 20
Expedición pedidos 20

1 2 3 4 5 6 7 8 9 10
Tipo de pieza C Necesidades brutas 20
Tamaño de lote Ent. Programadas
Tiempo de espera 1 semana Saldo disponible 0
Existencias Necesidades netas 20
Inv. Seg. Ent. Pedidos 20
Expedición pedidos 20

1 2 3 4 6 75 8 9 10
Tipo de pieza B Necesidades brutas 60 40
Tamaño de lote 40 Ent. Programadas 20
Tiempo de espera 2 semana Saldo disponible 10 10 10 10 10 10 10 10
Existencias 10 Necesidades netas 30 30
Inv. Seg. Ent. Pedidos 40 40
Expedición pedidos 40 40

1 2 3 4 5 6 7 8 9 10
Tipo de pieza D Necesidades brutas 120 120 20
Tamaño de lote 160 Ent. Programadas
Tiempo de espera 3 semana Saldo disponible 100 100 100 100 140 20 0
Existencias 100 Necesidades netas 20 0 0
Inv. Seg. Ent. Pedidos 160
Expedición pedidos 160

1 2 3 4 5 6 7 8 9 10
Tipo de pieza F Necesidades brutas 40 40
Tamaño de lote Ent. Programadas 40
Tiempo de espera 2 semana Saldo disponible 0 0
Existencias Necesidades netas 0 40
Inv. Seg. Ent. Pedidos 40
Expedición pedidos 40

1 2 3 4 5 6 7 8 9 10
Tipo de pieza E Necesidades brutas 160 80
Tamaño de lote Ent. Programadas 60
Tiempo de espera 2 semana Saldo disponible 100 0 0 0 0 0 0
Existencias 100 Necesidades netas 0 80
Inv. Seg. Ent. Pedidos 80
Expedición pedidos
8. One unit of A consists of 2 units of B and three units of C. Each B consists of one unit of
F. C is obtained from one unit of D, one unit of E and two units of F. Parts A, B, C and D
have 20, 50, 60 and 25 units of stock. The lot-by-lot technique is applied to components
A, B and C to determine the lot size, while D, E and F need to purchase multiples of 50,
100 and 100, respectively. B has scheduled deliveries of 30 units in period 1. There are
no more scheduled deliveries. The delay times are one period for pieces A, B and D and
two periods for C, E and F. A's gross needs are 20 units in period 1, 20 units in period 2,
60 units in period 6, and 50 units in period 8. Find planned order shipments for all parts.

B (2) C (3)

F (1) D (1) E (1) F (2)


1 2 3 4 5 6 7 8
Tipo de pieza A Necesidades brutas 20 20 60 50
Tamaño de lote Ent. Programadas
Tiempo de espera 1 periodo Saldo disponible 0 0 0 0 0 0 0
Existencias 20 Necesidades netas 0 20 60 50
Inv. Seg. Ent. Pedidos 20 60 50
Expedición pedidos 20 60 50

1 2 3 4 5 6 7 8
Tipo de pieza B Necesidades brutas 40 120 100
Tamaño de lote Ent. Programadas 30
Tiempo de espera 1 periodo Saldo disponible 40 40 40 40 0 0 0
Existencias 50 Necesidades netas 0 80 100
Inv. Seg. Ent. Pedidos 80 100
Expedición pedidos 80 100

1 2 3 4 5 6 7 8
Tipo de pieza C Necesidades brutas 60 180 150
Tamaño de lote Ent. Programadas
Tiempo de espera 2 periodo Saldo disponible 0 0 0 0 0 0 0
Existencias 60 Necesidades netas 0 180 150
Inv. Seg. Ent. Pedidos 180 150
Expedición pedidos 180 150

1 2 3 4 5 6 7 8
Tipo de pieza D Necesidades brutas 180 150
Tamaño de lote 50 Ent. Programadas
Tiempo de espera 1 periodo Saldo disponible 25 25 45 45 45
Existencias 25 Necesidades netas 155 105
Inv. Seg. Ent. Pedidos 200 150
Expedición pedidos 200 150

1 2 3 4 5 6 7 8
Tipo de pieza E Necesidades brutas 180 150
Tamaño de lote 100 Ent. Programadas
Tiempo de espera 2 periodos Saldo disponible 20 20 70
Existencias Necesidades netas 180 130
Inv. Seg. Ent. Pedidos 200 200
Expedición pedidos 200 200

1 2 3 4 5 6 7 8
Tipo de pieza F Necesidades brutas 360 80 300 100
Tamaño de lote 100 Ent. Programadas
Tiempo de espera 2 periodos Saldo disponible 40 60 60 60
Existencias Necesidades netas 360 40 240 40
Inv. Seg. Ent. Pedidos 400 100 300 100
Expedición pedidos 400 100 300 100
9. Each unit of A consists of one unit of B, two units of C, and one unit of D. C consists of
two units of D and three units of E. Parts A, C, D and E have stocks of 20, 10, 20 and 10
units, respectively. Part B has a scheduled delivery of 10 units in period 1 and C has a
scheduled delivery of 50 units in period 1. The batch-by-batch (LxL) technique is applied
for parts A and B. Part C requires a minimum lot size of 50 units. Multiples of 100 and
50, respectively, need to be purchased for D and E. The delay times for parts A, B and C
are one period and for parts D and E they are two periods. A's gross needs are 30 in
period 2, 30 in period 5, and 40 in period 8. Find planned order shipments for all parts.

C (2) B (1) D (1)

D (2) E (3)
1 2 3 4 5 6 7 8
Tipo de pieza A Necesidades brutas 30 30 40
Tamaño de lote Ent. Programadas
Tiempo de espera 1 periodo Saldo disponible 20 0 0 0 0 0 0 0
Existencias 20 Necesidades netas 10 30 40
Inv. Seg. Ent. Pedidos 10 30 40
Expedición pedidos 10 30 40

1 2 3 4 5 6 7 8
Tipo de pieza B Necesidades brutas 10 30 40
Tamaño de lote Ent. Programadas 10
Tiempo de espera 1 periodo Saldo disponible 0 0 0 0 0 0 0
Existencias Necesidades netas 0 30 40
Inv. Seg. Ent. Pedidos 30 40
Expedición pedidos 30 40

1 2 3 4 5 6 7 8
Tipo de pieza C Necesidades brutas 20 60 80
Tamaño de lote 50 Ent. Programadas 50
Tiempo de espera 1 periodo Saldo disponible 40 40 40 30 30 30 0
Existencias 10 Necesidades netas 0 20 50
Inv. Seg. Ent. Pedidos 50 50
Expedición pedidos 50 50

1 2 3 4 5 6 7 8
Tipo de pieza D Necesidades brutas 10 100 30 100 40
Tamaño de lote 100 Ent. Programadas
Tiempo de espera 2 periodos Saldo disponible 10 10 10 80 80 80 40
Existencias 20 Necesidades netas 0 90 20 20 0
Inv. Seg. Ent. Pedidos 100 100 100
Expedición pedidos 100 100 100

1 2 3 4 5 6 7 8
Tipo de pieza E Necesidades brutas 150 150
Tamaño de lote 50 Ent. Programadas
Tiempo de espera 2 periodos Saldo disponible 10 10 10 10 10 10
Existencias 10 Necesidades netas 140 140
Inv. Seg. Ent. Pedidos 150 150
Expedición pedidos 150 150
10. Below are the gross MRP needs for part A for the next 10 weeks. A's lead time is three
weeks and the preparation cost is $10. There is an idle goods cost of 1 cent per unit per
week. The initial inventory is 90 units.

Use the minimum total cost or minimum unit cost method of lot sizing to establish the
timing and quantity to ship of the first order.
WEEK 1 2 3 4 5 6 7 8 9 10
GROSS NEEDS 30 50 10 20 70 80 20 60 200 50
SCHEDULED TICKETS
PROJECTED AVAILABLE BALANCE = 90 250 20 190 170 100 20 0 25 50 0
0 0
NET NEEDS 0 0
SCHEDULED ORDER ENTRIES 190 31
0
DISPATCH OF SCHEDULED ORDERS 190 310

Week Ordered Cost of idle assets Ordered Cost t. min Total cost
quantity cost
1 30 $ $ $ $
- 10.00 10.00 10.00
1-2 80 $ $ $ $
0.50 10.00 9.50 10.50
1-3 90 $ $ $ $
0.70 10.00 9.30 10.70
1-4 110 $ $ $ $
1.30 10.00 8.70 11.30
1-5 180 $ $ $ $
4.10 10.00 5.90 14.10
1-6 260 $ $ $ $
8.50 10.00 1.50 18.50
1-7 280 $ $ $ $ PP
9.30 10.00 0.70 19.30
1-8 340 $ $ $ $
13.50 10.00 3.50 23.50
1-9 540 $ $ $ $
29.10 10.00 19.10 39.10
1-10 590 $ $ $ $
34.00 10.00 24.00 44.00
Week Ordered Cost of idle assets Ordered Cost t. min Total cost
quantity cost
8 60 $ $ $ $
- 10.00 10.00 10.00
8-9 260 $ $ $ $
2.00 10.00 8.00 12.00
8-10 310 $ $ $ $ SP
3.00 10.00 7.00 13.00

Wee Net needs Production Inv. Retention cost Preparation cost Total cost
k quantity Final
1 30 280 250 $ $ $
2.50 10.00 12.50
2 50 0 200 $ $ $
2.00 - 14.50
3 10 0 190 $ $ $
1.90 - 16.40
4 20 0 170 $ $ $
1.70 - 18.10
5 70 0 100 $ $ $
1.00 - 19.10
6 80 0 20 $ $ $
0.20 - 19.30
7 20 0 0 $ $ $
- 10.00 29.30
8 60 310 250 $ $ $
2.50 - 31.80
9 200 0 50 $ $ $
0.50 - 32.30
10 50 0 0 $ $ $
- - 32.30
11. Product A is a final piece and is obtained from two units of B and four units of C. B is
obtained from three units of D and two units of E. C is obtained from two units of F and
two of E.
A has a delay time of one week. B, C and E have delay times of two weeks and D and F
have delay times of three weeks.
Specifying when parts should be ordered and received. To date there are no units in stock.
a ) Present the list of materials (product structural tree).
b ) If 100 units of A are needed in week 10, develop the MRP planning program

week 1 2 3 4 5 6 7 8 9 10
PART TYPE: A GROSS NEEDS 100
LOT SIZE: SCHEDULED TICKETS - - - - - - - - - -
AVAILABLE BALANCE
WAITING TIME: 1 WEEK PROJECTED 0 0 0 0 0 0 0 0 0 0
STOCK NET NEEDS 100
INV. OF SECURITY ORDER ENTRY 100
ORDERS DISPATCH 100
PART TYPE: B GROSS NEEDS 200
LOT SIZE: SCHEDULED TICKETS - - - - - - - - - -
AVAILABLE BALANCE
WAITING TIME: 2 WEEK PROJECTED 0 0 0 0 0 0 0 0 0 0
STOCK NET NEEDS 200
INV. OF SECURITY ORDER ENTRY 200
ORDERS DISPATCH 200
PART TYPE: C GROSS NEEDS 400
LOT SIZE: SCHEDULED TICKETS - - - - - - - - - -
AVAILABLE BALANCE
WAITING TIME: 2 WEEK PROJECTED 0 0 0 0 0 0 0 0 0 0
STOCK NET NEEDS 400
INV. OF SECURITY ORDER ENTRY 400
ORDERS DISPATCH 400
PART TYPE: D GROSS NEEDS 600
LOT SIZE: SCHEDULED TICKETS - - - - - - - - - -
AVAILABLE BALANCE
WAITING TIME: 3 WEEK PROJECTED 0 0 0 0 0 0 0 0 0 0
STOCK NET NEEDS 600
INV. OF SECURITY ORDER ENTRY 600
ORDERS DISPATCH 600
PART TYPE: E GROSS NEEDS 1200
LOT SIZE: SCHEDULED TICKETS - - - - - - - - - -
AVAILABLE BALANCE
WAITING TIME: 2 WEEK PROJECTED 0 0 0 0 0 0 0 0 0 0
STOCK NET NEEDS 1200
INV. OF SECURITY ORDER ENTRY 1200
ORDERS DISPATCH 1200
PART TYPE: F GROSS NEEDS 800
LOT SIZE: SCHEDULED TICKETS - - - - - - - - - -
AVAILABLE BALANCE
WAITING TIME: 3 WEEK PROJECTED 0 0 0 0 0 0 0 0 0 0
STOCK NET NEEDS 800
INV. OF SECURITY ORDER ENTRY 800
80
ORDERS DISPATCH 0

12. Product A consists of two units of subassembly B, three units of C, and one unit of D. B
consists of four units of E and three units of F. C is obtained from two units of H and
three units of D. H is obtained from five units of E and two units of G.
a) Create a simple bill of materials (product structural tree).
b) Trace the structure of the product with lower level coding.
c) Prepare a tiered parts list.
d) To produce 100 units of A, determine the number of units of B, C, D, E, F, G, and H
needed.
A (1)
B (2)
E (4)
F (3)
C (3)
H (2)
E (5)
G (2)
D (3)
D (1)

FOR 100 UNITS OF A:


B= 200
C=300
D=1000
E=3800
F=600
G=1200
H=600
13. Here are the gross MRP requirements for part X for the next 10 weeks. A's lead time is
two weeks and the preparation cost is $9. The cost of idle goods is 2 cents per unit per
week. Initial stock is 70 units

Use the minimum total cost or minimum unit cost method of lot sizing to establish the
timing and quantity to ship of the first order.

SEMANA CANTIDAD PEDIDA COSTO BIENES INCATIVOS COSTO PEDIDO COSTO TOTAL
1 20 $ - $ 9.00 $ 9.00
1--2 30 $ 2.00 $ 9.00 $ 11.00
1--3 45 $ 8.00 $ 9.00 $ 17.00 1ER PERIODO
4 45 $ - $ 9.00 $ 9.00
4--5 55 $ 2.00 $ 9.00 $ 11.00
4--6 85 $ 14.00 $ 9.00 $ 23.00 2DO PERIODO
7 100 $ - $ 9.00 $ 9.00
7--8 120 $ 4.00 $ 9.00 $ 13.00 3ER PERIODO
9 40 $ - $ 9.00 $ 9.00 4TO PERIODO
10 150 $ - $ 9.00 $ 9.00 5TO PERIODO

SEMANA NECESIDADES NETAS CANTIDAD PRODUCCION INVENTARIO FINALCOSTO DE RETENCION COSTO DE PREPARACION COSTO TOTAL
1 20 45 25 $ 5.00 $ 9.00 $ 14.00
2 10 15 $ 3.00 $ - $ 3.00
3 15 - $ - $ - $ -
4 45 85 40 $ 8.00 $ 9.00 $ 17.00
5 10 30 $ 6.00 $ - $ 6.00
6 30 - $ - $ - $ -
7 100 120 20 $ 4.00 $ 9.00 $ 13.00
8 20 - $ - $ - $ -
9 40 40 - $ - $ 9.00 $ 9.00
10 150 150 - $ - $ 9.00 $ 9.00

The first order must be placed within the first three weeks in a quantity of 45 units.
14. Audio Products, Inc., produces two AM/FM/CD players for cars. The radio/CD units are
identical, what differs is the mounting hardware and trim trim. The standard model fits in
medium and large cars and the sport model fits in small sports cars.
Audio Products handles production as follows. The chassis (radio/CD unit) is assembled in
Mexico and has a manufacturing lead time of two weeks. The assembly materials are purchased
from a laminating company and have a lead time of three weeks. The trim trim is purchased from
a Taiwanese electronics company with offices in Los Angeles as pre-packaged units consisting
of knobs and various trim pieces.
Counterframe packages have a lead time of two weeks. The time for final assembly is not taken
into account because the customer is responsible for the trim package and assembly.
Audio Products suppliers, wholesalers and retailers place specific orders for the two models up
to eight weeks in advance. The demand table below summarizes these orders and also the
number of additional visits to satisfy the small number of individual sales:

To date there are 50 radio/CD units, but no bezel packages or mounting hardware.
Prepare a material requirements plan to exactly meet the demand schedule.
Specify the gross and net requirements, inventories, and planned order entry and delivery periods
for the radio/CD chassis, trim for standard and sport models, and mounting materials for standard
and sport models.
WEEK 0 1 2 3 4 5 6 7 8
PART TYPE: Standard GROSS NEEDS 300 400
LOT SIZE: SCHEDULED TICKETS - - - - - - - - -
AVAILABLE BALANCE
WAIT TIME: PROJECTED 0 0 0 0 0 0 0 0 0
STOCK: NET NEEDS 300 400
INV. OF SECURITY ORDER ENTRY 300 400
ORDERS DISPATCH 300 400
PART TYPE: Sport GROSS NEEDS 200 100
LOT SIZE: SCHEDULED TICKETS - - - - - - - - -
AVAILABLE BALANCE
WAIT TIME: PROJECTED 0 0 0 0 0 0 0 0 0
STOCK: NET NEEDS 200 100
INV. OF SECURITY ORDER ENTRY 200 100
ORDERS DISPATCH 200 100
PART TYPE: Chassis GROSS NEEDS 300 200 500
LOT SIZE: SCHEDULED TICKETS - - - - - - - - -
AVAILABLE BALANCE
WAITING TIME: 2 weeks PROJECTED 50 50 50 50 0 0 0 0 0
STOCK: 50 NET NEEDS 250 200 500
INV. OF SECURITY ORDER ENTRY 250 200 500
ORDERS DISPATCH 250 200 500
PART TYPE: Standard Hardware GROSS NEEDS 300 400
LOT SIZE: SCHEDULED TICKETS - - - - - - - - -
AVAILABLE BALANCE
WAITING TIME: 3 weeks PROJECTED 0 0 0 0 0 0 0 0 0
STOCK: NET NEEDS 300 400
INV. OF SECURITY ORDER ENTRY 300 400
ORDERS DISPATCH 300 400
PART TYPE: Sports Hardware GROSS NEEDS 200 100
LOT SIZE: SCHEDULED TICKETS - - - - - - - - -
AVAILABLE BALANCE
WAITING TIME: 3 weeks PROJECTED 0 0 0 0 0 0 0 0 0
STOCK: NET NEEDS 200 100
INV. OF SECURITY ORDER ENTRY 200 100
ORDERS DISPATCH 200 100
PART TYPE: Est. counterframe. GROSS NEEDS 300 400
LOT SIZE: SCHEDULED TICKETS - - - - - - - - -
AVAILABLE BALANCE
WAITING TIME: 2 weeks PROJECTED 0 0 0 0 0 0 0 0 0
STOCK: NET NEEDS 300 400
INV. OF SECURITY ORDER ENTRY 300 400
ORDERS DISPATCH 300 400
PART TYPE: Counterframe dep. GROSS NEEDS 200 100
LOT SIZE: SCHEDULED TICKETS - - - - - - - - -
AVAILABLE BALANCE
WAITING TIME: 2 weeks PROJECTED 0 0 0 0 0 0 0 0 0
STOCK: NET NEEDS 200 100
INV. OF SECURITY ORDER ENTRY 200 100
ORDERS DISPATCH 200 100
15. A playground manufacturer produces the action figure symbolized as final piece A of the
BOM shown below. A table is also shown with the stocks of the parts used in this assembly.
Calculate the cost of the parts purchased to complete the 100 units of final part A. Assume that
each purchased part (B, D, and F) costs $1.

100

100 100
200

400 200

600
SEMANA 0 1
TIPO DE PIEZA: A NECESIDADES BRUTAS 100
TAMAÑO DE LOTE: ENTRADAS PROGRAMADAS - -
TIEMPO DE ESPERA: SALDO DISP. PROYECTADO
EXISTENCIAS: NECESIDADES NETAS 100
INV. DE SEGURIDAD ENTRADA DE PEDIDOS 100
EXPEDICION DE PEDIDOS 100
TIPO DE PIEZA: C NECESIDADES BRUTAS 200
TAMAÑO DE LOTE: ENTRADAS PROGRAMADAS - -
TIEMPO DE ESPERA: SALDO DISP. PROYECTADO 38 0
EXISTENCIAS: NECESIDADES NETAS 162
INV. DE SEGURIDAD ENTRADA DE PEDIDOS 162
EXPEDICION DE PEDIDOS 162
TIPO DE PIEZA: B NECESIDADES BRUTAS 424
TAMAÑO DE LOTE: ENTRADAS PROGRAMADAS - -
TIEMPO DE ESPERA: SALDO DISP. PROYECTADO 154 0
EXISTENCIAS: NECESIDADES NETAS 270
INV. DE SEGURIDAD ENTRADA DE PEDIDOS 270
EXPEDICION DE PEDIDOS 270
TIPO DE PIEZA: D NECESIDADES BRUTAS 100
TAMAÑO DE LOTE: ENTRADAS PROGRAMADAS - -
TIEMPO DE ESPERA: SALDO DISP. PROYECTADO 255 155
EXISTENCIAS: NECESIDADES NETAS
INV. DE SEGURIDAD ENTRADA DE PEDIDOS
EXPEDICION DE PEDIDOS
TIPO DE PIEZA: E NECESIDADES BRUTAS 324
TAMAÑO DE LOTE: ENTRADAS PROGRAMADAS - -
TIEMPO DE ESPERA: SALDO DISP. PROYECTADO 87 0
EXISTENCIAS: NECESIDADES NETAS 237
INV. DE SEGURIDAD ENTRADA DE PEDIDOS 237
EXPEDICION DE PEDIDOS 237
TIPO DE PIEZA: F NECESIDADES BRUTAS 711
TAMAÑO DE LOTE: ENTRADAS PROGRAMADAS - -
TIEMPO DE ESPERA: SALDO DISP. PROYECTADO 124 0
EXISTENCIAS: NECESIDADES NETAS 587
INV. DE SEGURIDAD ENTRADA DE PEDIDOS 587
EXPEDICION DE PEDIDOS 587

PIEZA A B C D E F COSTO TOTAL


PIEZA COMPRADA 0 270 162 0 273 587 $ 1,292.00

PIEZA A B C D E F COSTO TOTAL


PIEZA COMPRADA 0 270 162 0 273 587 $ 857.00
16. RC Hobby Company has basic and deluxe radio controlled airplanes. The tiered list of
materials and the use of each is presented below. The company planned to build 20 basic models,
but the client reduced the order to only 5 units. Another customer asks if they can increase their
order for luxury units. Suppose there is enough inventory of parts C, D, and E to build 20 basic
units, but there is no stock left. How many more luxury units can be built now?

Básica
Tipo de pieza W Necesidades brutas 5
Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible
Existencias Necesidades netas 5
Inv. Seg. Ent. Pedidos 5
Expedición pedidos

Tipo de pieza A Necesidades brutas 10


Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible
Existencias Necesidades netas 10
Inv. Seg. Ent. Pedidos 10
Existencias
Inicio - 5 básica -22 lujo
Expedición pedidos
A
BTipo de pieza B Necesidades brutas 15
CTamaño de lote
120 90 2Ent. Programadas
D 240
Tiempo de espera 180 144Saldo disponible
EExistencias 60 45 23Necesidades netas 15
G
Inv. Seg. Ent. Pedidos 15
W
Expedición pedidos

Tipo de pieza C Necesidades brutas 30


Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible 90
Existencias 120 Necesidades netas
Inv. Seg. Ent. Pedidos
Expedición pedidos

Tipo de pieza D Necesidades brutas 60


Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible 180
Existencias 240 Necesidades netas
Inv. Seg. Ent. Pedidos
Expedición pedidos

Tipo de pieza E Necesidades brutas 15


Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible 45
Existencias 60 Necesidades netas
Inv. Seg. Ent. Pedidos
Expedición pedidos
Tipo de pieza G Necesidades brutas 22
Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible
Existencias Necesidades netas 22
Inv. Seg. Ent. Pedidos 22
Expedición pedidos

Tipo de pieza D Necesidades brutas 66


Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible 114
Existencias 180 Necesidades netas
Inv. Seg. Ent. Pedidos
Expedición pedidos

Tipo de pieza H Necesidades brutas 22


Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible
Existencias Necesidades netas 22
Inv. Seg. Ent. Pedidos 22
Expedición pedidos

Tipo de pieza C Necesidades brutas 88


Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible 2
Existencias 90 Necesidades netas
Inv. Seg. Ent. Pedidos
Expedición pedidos

Tipo de pieza E Necesidades brutas 22


Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible 23
Existencias 45 Necesidades netas
Inv. Seg. Ent. Pedidos
Expedición pedidos
17. Given the product tree diagram below (bill of materials), s 17. If you were to distribute all the
parts in the plant before building a unit of product A, what would be the total number of parts
purchased (D, E, F and G)?

Tipo de pieza A Necesidades brutas 1 Tipo de pieza E Necesidades brutas 30


Tamaño de lote Ent. Programadas Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible Tiempo de espera Saldo disponible
Existencias Necesidades netas 1 Existencias Necesidades netas 30

Tipo de pieza B Necesidades brutas 5 Tipo de pieza F Necesidades brutas 14


Tamaño de lote Ent. Programadas Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible Tiempo de espera Saldo disponible
Existencias Necesidades netas 5 Existencias Necesidades netas 14

Tipo de pieza C Necesidades brutas 3 Tipo de pieza G Necesidades brutas 9


Tamaño de lote Ent. Programadas Tamaño de lote Ent. Programadas
Tiempo de espera Saldo disponible Tiempo de espera Saldo disponible
Existencias Necesidades netas 3 Existencias Necesidades netas 9

Tipo de pieza D Necesidades brutas 25


18. A part has a setup cost of $100 and a weekly
Tamaño de lote Ent. Programadas
holding cost of 50 cents per unit. With the
Tiempo de espera Saldo disponible
Existencias Necesidades netas 25
following net needs, what would be the batch-by-lot (L4L) lot sizes, economic order quantity
(EOQ), and minimum total cost (MTC)?
Also, what is the total cost associated with each technique for determining lot size?

Week
1 2 3 4 5 6 7 8 9 10
Gross needs 10 30 10 50 20 40 50 30
Scheduled entries
Projected Available Balance
Net needs
Scheduled order entries
Scheduled order shipping

L4L
Wee Net needs Production Final Holding cost Preparation Total cost
k quantity inventory cost
1 10 10 0 $ $ $
- 100.00 100.00
2 30 30 0 $ $ $
- 100.00 200.00
3 10 10 0 $ $ $
- 100.00 300.00
4 50 50 0 $ $ $
- 100.00 400.00
5 20 20 0 $ $ $
- 100.00 500.00
6 40 40 0 $ $ $
- 100.00 600.00
7 50 50 0 $ $ $
- 100.00 700.00
8 30 30 0 $ $ $
- 100.00 800.00

ECONOMIC ORDER QUANTITY


Wee Net needs Production Final Holding cost Preparation Total cost
k quantity inventory cost
1 10 110 100 $ $ $
50.00 100.00 150.00
2 30 0 70 $ $ $
35.00 - 185.00
3 10 0 60 $ $ $
30.00 - 215.00
4 50 0 10 $ $ $
5.00 - 220.00
5 20 110 100 $ $ $
50.00 100.00 370.00
6 40 0 60 $ $ $
30.00 - 400.00
7 50 0 10 $ $ $
5.00 - 405.00
8 30 110 90 $ $ $
45.00 100.00 550.00

MINIMUM TOTAL COST


Week Ordered Cost of idle assets Ordered cost Cost t. min Total cost
quantity
1 10 $ $ $ $
- 100.00 100.00 100.00
1-2 40 $ $ $ $
15.00 100.00 85.00 115.00
1-3 50 $ $ $ $
25.00 100.00 75.00 125.00
1-4 100 $ $ $ $
100.00 100.00 - 200.00
1-5 120 $ $ $ $
160.00 100.00 60.00 260.00
1-6 160 $ $ $ $
240.00 100.00 140.00 340.00
1-7 210 $ $ $ $
390.00 100.00 290.00 490.00
1-8 240 $ $ $ $
495.00 100.00 395.00 595.00

Week Ordered Cost of idle assets Ordered cost Cost t. min Total cost
quantity
5 20 $ $ $ $
- 100.00 100.00 100.00
5-6 60 $ $ $ $
20.00 100.00 80.00 120.00
5-7 110 $ $ $ $
70.00 100.00 30.00 170.00
5-8 140 $ $ $ $
115.00 100.00 15.00 215.00

Wee Net needs Production Inv. Retention cost Preparation cost Total cost
k quantity Final
1 10 100 90 $ $ $
45.00 100.00 145.00
2 30 0 60 $ $ $
30.00 - 175.00
3 10 0 50 $ $ $
25.00 - 200.00
4 50 0 0 $ $ $
- - 200.00
5 20 140 120 $ $ $
60.00 100.00 360.00
6 40 0 80 $ $ $
40.00 - 400.00
7 50 0 30 $ $ $
15.00 - 415.00
8 30 0 0 $ $ $
- - 415.00

19. Brown and Brown Electronics manufactures a line of digital video disc (DVD) players. Even
though there are differences between the various products, there are a number of common parts
in each player. Below is the list of materials with the necessary number of each part, lead times
and current stocks of parts and components.
0 1 2 3 4 5 6 7 8 9 10
Tipo de pieza Modelo DVD A Necesidades brutas 700
Tamaño de lote Ent. Programadas
Tiempo de espera 1 semana Saldo disponible 30 30 30 30 30 30 30 30 30 30 0
Existencias 30 Necesidades netas 670
Inv. Seg. Ent. Pedidos 670
Expedición pedidos 670

0 1 2 3 4 5 6 7 8 9 10
Tipo de pieza Modelo DVD B Necesidades brutas 1200
Tamaño de lote Ent. Programadas
Tiempo de espera 2 semana Saldo disponible 50 50 50 50 50 50 50 50 50 50 0
Existencias 50 Necesidades netas 1150
Inv. Seg. Ent. Pedidos 1150
Expedición pedidos 1150

0 1 2 3 4 5 6 7 8 9 10
Tipo de pieza Subensamble C Necesidades brutas 2300 670
Tamaño de lote Ent. Programadas
Tiempo de espera 1 semana Saldo disponible 75 75 75 75 75 75 75 75 0 0
Existencias 75 Necesidades netas 2225 670
Inv. Seg. Ent. Pedidos 2225 670
Expedición pedidos 2225 670

0 1 2 3 4 5 6 7 8 9 10
Tipo de pieza Subensamble D Necesidades brutas 1340
Tamaño de lote Ent. Programadas
Tiempo de espera 2 semana Saldo disponible 80 80 80 80 80 80 80 80 80 0
Existencias 80 Necesidades netas 1260
Inv. Seg. Ent. Pedidos 1260
Expedición pedidos 1260

0 1 2 3 4 5 6 7 8 9 10
Tipo de pieza Subensamble E Necesidades brutas 2300
Tamaño de lote Ent. Programadas
Tiempo de espera 1 semana Saldo disponible 100 100 100 100 100 100 100 100 0
Existencias 100 Necesidades netas 2200
Inv. Seg. Ent. Pedidos 2200
Expedición pedidos 2200
0 1 2 3 4 5 6 7 8 9 10
Tipo de pieza Pieza F Necesidades brutas 6970 1340
Tamaño de lote Ent. Programadas
Tiempo de espera 1 semana Saldo disponible 150 150 150 150 150 150 150 0 0
Existencias 150 Necesidades netas 6820 1340
Inv. Seg. Ent. Pedidos 6820 1340
Expedición pedidos 6820 1340

0 1 2 3 4 5 6 7 8 9 10
Tipo de pieza Pieza G Necesidades brutas 4450 1340
Tamaño de lote Ent. Programadas
Tiempo de espera 1 semana Saldo disponible 40 40 40 40 40 40 40 0 0
Existencias 40 Necesidades netas 4410 1340
Inv. Seg. Ent. Pedidos 4410 1340
Expedición pedidos 4410 1340

0 1 2 3 4 5 6 7 8 9 10
Tipo de pieza Materia prima H Necesidades brutas 4410 1340
Tamaño de lote Ent. Programadas
Tiempo de espera 2 semana Saldo disponible 200 200 200 200 200 200 0 0
Existencias 200 Necesidades netas 4210 1340
Inv. Seg. Ent. Pedidos 4210 1340
Expedición pedidos 4210 1340

0 1 2 3 4 5 6 7 8 9 10
Tipo de pieza Materia prima I Necesidades brutas 13640 2680
Tamaño de lote Ent. Programadas
Tiempo de espera 2 semana Saldo disponible 300 300 300 300 300 300 0 0
Existencias 300 Necesidades netas 13340 2680
Inv. Seg. Ent. Pedidos 13340 2680
Expedición pedidos 13340 2680

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