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introduction to materials management

Questions and Answers of Introduction To Materials Management

4.19. The following bill of materials represents the major components for a computer system.Complete the MRP records below. Note the following:■ Production plans (the MPS) for the 800 Deluxe
4.18. It is Monday morning, and you have just arrived at work. Complete the following MRP record as it would appear Monday morning. Lead time is 2 weeks, and the lot size is 100. Initial MRP Week 1 2
4.17. Complete the following MRP record. The lead time is 4 weeks, and the lot size is 200. What will happen if the gross requirements in week 3 are increased to 150 units? As a planner, what actions
4.16. Given the following product tree, determine the low-level codes and the gross and net quantities for each part. There is a requirement for 100 As in week 4 and 50 Bs in week 5. There is a
4.15. Given the following product tree, explode, offset, and determine the gross and net requirements. All lead times are 1 week, and the quantities required are shown in parentheses. The master
4.14. Given the following product tree, develop a material requirements plan for the components.Quantities per are shown in parentheses. The following worksheet shows the present active orders, the
4.13. Given the following product tree, determine the low-level codes for all the components. C A K F G Item Low-Level Code Y L M N H I A B C D E F G H I J K L MN X Y
4.12. Given the following product tree, determine the low-level codes for all the components. X A B C D E Y F G Item AV C G H I J Low-Level Code E X H F Y
4.11. Given the following product tree, complete the MRP records for parts X, Y, W, and Z. Note that parts X and Y have specified order quantities. Y(3) Z(1) W(1) X Z(2)
4.10. Given the following product tree, explode, offset, and determine the gross and net requirements. The quantities required are shown in parentheses. The master production schedule calls for the
1134.9. MPS parent X has planned order releases of 30 in weeks 2 and 4. Given the following product tree, complete the MRP records for parts Y and Z. Quantities required are shown in brackets. X Y(1)
4.8. Given the following partial product tree, explode, offset, and determine the gross and net requirements for components H, I, J, and K. There are other components, but they are not connected to
4.7. Complete the following MRP matrix for Item X. Determine when orders should be released and the size of those orders. The lot size is 100 and lead time is 2 weeks. Week I 2 3 4 5 Gross
4.5. Given the following product tree, explode, offset, and determine the gross and net requirements. All lead times are 1 week, and the quantities required are shown in parentheses. The master
4.3. Using the following product tree, determine the planned order receipts and planned order releases if there are 50 As required in week 3 and 100 in week 5. All lead times are 1 week except for
4.1. Using the following product tree, construct the appropriate single-level trees. How many Cs are needed to make 100 Xs and 50 Ys? A(1) B(1) B(1) E(2) E(3) C(3) Y C(3)
5. It is clear that the company has set the safety stock (planning for extra material “just in case” something goes wrong) level for components at zero in order to minimize their inventory during
4. The customer described in question 3 decides against placing the order for the extra units in week 4, but shortly thereafter you are informed that someone in the warehouse dropped a box of
3. Suppose that a customer for Product X wants three additional units for their order scheduled for week 4. What would you tell them? Specifically, if you cannot promise them the three units for week
2. From the master schedule for Product X and using the data given for components A, B, C, and D, create MRP grids for each of the components for the next ten weeks.CompanyBenzie Products Company
1. Complete the master schedule for Product X, including the projected available inventory and the ATP numbers.CompanyBenzie Products Company produces several lines of products, but one (they call it
6. Can you think of any other “what if’ questions that might be more easily addressed by a systematic approach such as MRP?Ken Mack, plant manager for the Apix Polybob Company, was having a
5. Suppose that the design engineer advises that he has a new design for component F. It won’t be ready until sometime after week 2, but he wants you to give a date for the first supplier shipment
4. Suppose it was discovered that only 250 of component E were in stock instead of the 300 listed on the inventory record. What problems would this cause (if any), and what are some of the ways that
3* Do any conditions bother you about the ability of MRP to deal with the problems? What specifically are those conditions?Ken Mack, plant manager for the Apix Polybob Company, was having a heated
2. Use the product information to develop an MRP approach to the problems. Would MRP solve the problems? If so, show specifically how MRP would avoid the problems discussed by Ken and Jack.Ken Mack,
1. What are the key issues brought about in the conversation? What are the key symptoms, and what are the underlying problems? Be specific in your answers.Ken Mack, plant manager for the Apix Polybob
4.6. Complete the following table. Lead time for the part is 2 weeks. The lot size is 50. In what periods should orders be released, and what should be the size of those orders?1 2 3 4 5 6 7 Gross
4.4. Complete the following table. Lead time for the part is 1 week, and the order quantity is 150. What action should be taken?1 2 3 4 Gross Requirements 70 100 120 80 Projected Available 80 Net
4.2. Product A is assembled from two units of B 1 and three units of B2. B 1 is made of one unit of C l, four units of C2, and one unit of C3. B2 is made of three units of C2 and three units of C3.a.
31. Describe how MRP might be used to plan for a change in design for a product.
30. Describe the problems that might come from using an incorrect bill of material in MRP.
29. What are the three important factors in managing the material requirements plan? Why is each important?
28. What is a transaction message? Why is it important?
27. What are exception messages? What is their purpose?
26. Describe the differences among planned orders, released orders, and firm planned orders. Who controls each?
25. What would make the planned order release for an item different from the planned order receipt?
24. Give two examples of processes with inherent scrap. Hint, the use of natural products often involves some scrap.
23. What are the responsibilities of a material requirements planner?
22. What is the meaning of the term low-level code? How is the low-level code of an MPS part represented?
21. What is an open order? How does it get closed?
20. What is a scheduled receipt? From where does it originate?
19. Who is responsible for releasing an order? Describe what happens to the inventory records and to PAC and purchasing.
18. From where does the gross requirement of a component come?
17. What is a planned order? How is it created?
16. Describe the processes of offsetting and exploding.
15. What are where-used and pegging reports? Give some of their uses.
14. Describe each of the seven uses of a bill of material described in the text.
13. Why do MRP computer programs store single-level bills?
12. Describe the following types of bills of material:a. Product tree.b. Multilevel bill.c. Single-level bill.d. Indented bill.e. Summarized parts list.f. Planning bill.
11. Describe the parent-component relationship.
10. To what does bill o f material structure refer? Why is it important?
9. What is a bill of material? What are two important points about bills of material?
8. What data is found in a part master file or an item master file?
7. What are the major inputs to the MRP system?
6. Why is a computer necessary in an MRP system?
5. What is the relationship between the MPS and the MRP?
4. What are the objectives of the MRP?
3. Should an MRP be used with dependent or independent demand items?
2. What is the difference between dependent and independent demand?
1. What is a material requirements plan?
A regional warehouse orders items once a week from a central warehouse. The truck arrives 3 days after the order is placed. The warehouse operates 5 days a week. For a particular brand and size of
A firm orders a number of items from a regional warehouse every 2 weeks. Delivery takes 1 week. Average demand is 200 units per week, and safety stock is held at 2 weeks’supply.a. Calculate the
A company that manufactures snow shovels has one plant and two distribution centers(DCs). Given the following information for the two DCs, calculate the gross requirements, projected available, and
A company that manufactures stoves has one plant and two distribution centers (DCs).Given the following information for the two DCs, calculate the gross requirements, projected available, and planned
The annual demand for an item is 10,000 units, the order quantity is 250, and the service level is 90%. Calculate the probable number of stockouts per year. LO.1
If in problem 11.15, management said that it is considering increasing the service level to one stockout every 2 years, what would the new safety stock be? If the cost of carrying inventory on this
Management has stated that it will tolerate one stockout per year. The forecast of annual demand for a particular SKU is 100,000 units, and it is ordered in quantities of 10,000 units. The lead time
The safety stock on an SKU is set at 200 units. The supplier says it has to increase the lead time from 6 weeks to 8. What should be the new safety stock? LO.1
The safety stock on an SKU is set at 200 units. The supplier says it can reduce the lead time from 8 weeks to 6. What should be the new safety stock? LO.1
If the weekly standard deviation is 150 units, what is it if the lead time is 3 weeks? LO.1
If the safety stock for an item is 200 units and the lead time is 3 weeks, what should the safety stock become if the lead time is extended to 5 weeks? LO.1
If the standard deviation is calculated from weekly demand data at 100 units, what is the equivalent sigma for a 3-week lead time? LO.1
A company stocks an SKU with a weekly demand of 500 units and a lead time of 4 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 100 and the order quantity is 2500
A company stocks an SKU with a weekly demand of 250 units and a lead time of 3 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 175 and the order quantity is 800
For an SKU, the standard deviation of demand during the lead time is 150 units, the annual demand is 10,000 units, and the order quantity is 750 units. Management says it will tolerate only one
The standard deviation of demand during the lead time is 100 units.a. Calculate the safety stock required for the following service levels: 75%, 80%, 85%, 90%, 95%, 99.99%.Calculate the change in
If sigma is 150 units, and the demand during the lead time is 200 units, calculate the safety stock and order point for:a. A 50% service level.b. An 85% service level.Use the table in Figure 11.5 to
Given the following data, calculate the average demand and the standard deviation.Period Actual Deviation Deviation Demand Squared 1 1700 2 2100 3 1900 4 2200 5 2000 6 1800 7 2100 8 2300 9 2100 10
Given the following data, calculate the average x of the distribution and the standard deviation (sigma).Period Actual Deviation Deviation Demand Squared 1 500 2 600 3 425 4 450 5 600 6 575 7 375 8
For a particular SKU, the lead time is 6 weeks, the average demand is 100 units a week, and safety stock is 200 units. What is the average inventory if 10 weeks’ supply is ordered at one time? What
For a particular SKU, the lead time is 4 weeks, the average demand is 125 units per week, and safety stock is 100 units. What is the average inventory if 1600 units are ordered at one time? What is
Grocery stores are an example of well-controlled inventory and replenishment systems.Describe in your own words examples of safety stock, the two-bin system, and the periodic review system, including
Describe distribution requirements planning. LO.1
Describe and compare the pull and push systems of inventory management. LO.1
If a factory does not supply the customer directly, from where does demand on the factory come? Is it independent or dependent demand? LO.1
What are the objectives of distribution inventory management? LO.1
Describe how changes in demand will affect the order quantity when using the period review system. LO.1
Define the target level used in the periodic review system. LO.1
What are the differences between the order point system and the periodic review system regarding when orders are placed and the quantity ordered at any one time? LO.1
What kinds of information are shown on a perpetual inventory record? LO.1
Describe the two-bin system. LO.1
If the lead time increases from 1 week to 4 weeks, will the standard deviation of demand during the lead time increase four times? If not, why not? LO.1
Why does the service level depend upon the number of orders per year? LO.1
What are the three categories of stockout costs? What do these costs depend upon in any company? LO.1
What is service level? LO.1
What is the standard deviation of demand during the lead time? If the standard deviation for the lead-time interval is 100 units, what percentage of the time would the actual demand be equal to LO.1
What is a normal distribution? What two characteristics define it? Why is it important in determining safety stock? LO.1
What are the five factors that can influence the amount of safety stock that should be carried? How does the length of the lead time affect the safety stock carried? LO.1
What are four characteristics of the order point system? LO.1

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