Bedok Company builds a finished good A that consists of two child items, one B and one
Question:
Bedok Company builds a finished good A that consists of two child items, one B and one C. Lead time on each of these three items is 1 week, and 10 of each of the two child items are in inventory currently, available for use; there are none of the finished good A in stock currently. All three items are ordered lot for lot. Clients have ordered 50 As, which must be finished and ready to ship in 4 weeks.
Questions
1. Organize this information into three MRP records (one for each item). 2. Assuming that the demand for 50 As is the only feature on Bedok's master produc- tion schedule, how much of A, B, and C should Bedok order, and when should Bedok place those orders? 3. According to the assumptions of MRP, if the company had absolutely nothing in stock (no inventory for A, B, or C), what would be the total amount of time required to produce 500 As?
Step by Step Answer: