ABC Table Inc. is high-end table manufacturer located at Saigon, Vietnam. ABC's table production workshop utilizes Material Planning Requirement (MRP) as its production system to assemble all its tables. Among ABC's list of products is the "Round Marble antique table" (RM) that carters to wealthy and conservative consumers. Assembly of MA requires highly skilled labors and high quality parts (eg; marble and red wood). External lead time for these inputs encompasses mainly transportation time from local suppliers. Internal lead time, duration required to assemble a component from parts, is estimated based on ABC's production historical data. The listed unit cost for each part is "standard price" provided by respective supplier, where "quantity discount" is yet to be factored in. Listed below are; 1. Bill of material (BOM) of RM 2. Unit cost and Lead time (internal & external) for components/parts of RM Item Lead time (days) Unit cost ($) RM 1.8 B1 3.6 B2 4.8 B3 2.8 C1 2.2 70 C2 1.2 1020 C3 1.8 160 RM B2 (3) C2 (3) C2 (1) C3 (4) C1 (2) 2. Material Requirement Planning as a Production System B1 (2) B3 (3) C1 (2) a) Base on your assigned case, answer the following questions; 1. Determine the material cost of C1 and C2 required to assemble 22 units of RM 2. Determine when C3 need to be on-hand and on-order, if 22 units of RM need to be on-hand at t=20? Assume that now is t = 0 and there is zero inventory for all components. Draw a table with only necessary components to illustrate your calculation. 3. Determine when is the earliest t, where 22 units of RM can be "on hand"? Assume that now t = 0 and there is zero inventory for all components. Draw a table with only necessary components to illustrate your calculation. b) From the perspective of Material Requirement Planning, discuss the two assumptions of Lead Time. For each assumption, discuss necessary conditions/ requirements so that the assumption is valid. c) If Lead Time for a component/part is increased by 100%, would the previously estimated earliest completion time be still attainable? Justify your conclusion. Assume that there is zero inventory for all components. ABC Table Inc. is high-end table manufacturer located at Saigon, Vietnam. ABC's table production workshop utilizes Material Planning Requirement (MRP) as its production system to assemble all its tables. Among ABC's list of products is the "Round Marble antique table" (RM) that carters to wealthy and conservative consumers. Assembly of MA requires highly skilled labors and high quality parts (eg; marble and red wood). External lead time for these inputs encompasses mainly transportation time from local suppliers. Internal lead time, duration required to assemble a component from parts, is estimated based on ABC's production historical data. The listed unit cost for each part is "standard price" provided by respective supplier, where "quantity discount" is yet to be factored in. Listed below are; 1. Bill of material (BOM) of RM 2. Unit cost and Lead time (internal & external) for components/parts of RM Item Lead time (days) Unit cost ($) RM 1.8 B1 3.6 B2 4.8 B3 2.8 C1 2.2 70 C2 1.2 1020 C3 1.8 160 RM B2 (3) C2 (3) C2 (1) C3 (4) C1 (2) 2. Material Requirement Planning as a Production System B1 (2) B3 (3) C1 (2) a) Base on your assigned case, answer the following questions; 1. Determine the material cost of C1 and C2 required to assemble 22 units of RM 2. Determine when C3 need to be on-hand and on-order, if 22 units of RM need to be on-hand at t=20? Assume that now is t = 0 and there is zero inventory for all components. Draw a table with only necessary components to illustrate your calculation. 3. Determine when is the earliest t, where 22 units of RM can be "on hand"? Assume that now t = 0 and there is zero inventory for all components. Draw a table with only necessary components to illustrate your calculation. b) From the perspective of Material Requirement Planning, discuss the two assumptions of Lead Time. For each assumption, discuss necessary conditions/ requirements so that the assumption is valid. c) If Lead Time for a component/part is increased by 100%, would the previously estimated earliest completion time be still attainable? Justify your conclusion. Assume that there is zero inventory for all components
