A company produces an end item E.

One unit of item E can be made by assembling 1 unit of A, 1 unit of B, and 2 units of C.

One unit of A is made of 1 unit of C and 2 units of D;

One unit of B is assembled by using 2 units of M and 1 unit of N.

On-hand inventories are 50 units of A and 45 units of C.

Scheduled receipts are 50 units of A at the beginning of Week 1, 100 units of C at the beginning of Week 1, and 100 units of C at the beginning of Week 2.

Lead times for subassemblies A and B are 1 week, and lead times for other components are 2 weeks.

Final assembly of E requires 1 week. 1.

1. Fill in Table 1 to prepare a master production schedule for end item E using the fixed-period-of-two policy. The beginning inventory for E is 108 units; the forecast and promised customer orders for end item E are provided in this table.

Week 1 2 3 4 5 6 7 8

Forecast 45 45 50 60 60 50 50 45

Customer orders (committed) 42 38 51 35 20 15 10

Projected on-hand inventory ?

Net Inventory before MPS ?

MPS Receipt ?

MPS Start Available-to-promise inventory (uncommitted)?

2. Construct a product structure tree (i.e., a BOM chart)?

3. Use your master production schedule (i.e., MPS Start) in Table 1 to develop a material requirement plan (MRP) for subassembly A using the lot-for-lot policy.

Week 1 2 3 4 5 6 7 8

MPS Start for E

A - Lead Time: 1 week; On Hand: 50 units; Lot Size: lot-for-lot; Scheduled Receipts: 50 units in Week 1

Gross Requirement ?

Scheduled Receipts?

Projected On Hand ?

Net Requirements ?

PO Receipts?

PO Releases ?

4. Use your master production schedule in Table 1 and your MRP schedule for subassembly A to develop a material requirement plan (MRP) for component C using the lot size of 100 units ordering policy. [

Week 1 2 3 4 5 6 7 8

C - Lead Time: 2 weeks; On Hand: 45 units; Lot Size: 100 units; Scheduled Receipts: 100 units in Week 1 and 100 units in Week 2

Gross Requirement ?

Scheduled Receipts ?

Projected On Hand ?

Net Requirements ?

PO Receipts ?

PO Releases?