The Acme Electronics Company makes two models of Wyle E. Coyote tape players.

While there are differences among the products, there are also common parts Each model A is made from 1 subassembly C and 2 subassemblies D. Model B is made from 2 Cs and 2 Es. Subassembly C is made from 2 Fs and 2 Gs. Subassembly D is made from 2 Fs. Each F is made from 2 Is and each G is made from 1 H.

Subassembly E and components I and H are purchased. The chart below gives information about each component. Note that if the requirements for any period exceed the lot size, then order the exact quantity needed. Make a note if there are any potential problems, and give some indication as to how to solve the problem.

Currently the MPS for A calls to make 100 units in week 7, 300 units in week 9, and 200 units in week 11.

The MPS for B calls to make 50 units in week 7, 400 units in week 8, and 300 units in week 10.

a. Use this information to create planned order releases for all component material necessary to meet the MPS demand.

b. After making the plan, you are told that 200 of the item H components in inventory have been scrapped due to quality problems. The supplier for H has said it would be impossible for them to expedite a shipment due to machine problems. How, if at all, does this impact you and what should your best course of action be?

Transcribed Image Text:

Component On-hand Lot Size Lead Time (wks.) I CDEFGHT 75 250 1 80 300 2 100 400 1 150 2000 40 550 600 700 1300 5000 1152