AQ4. MPS and MRP [30 marks] A firm assembles two final products X and Y, following the bill of materials in Figure 1.The X Y A(2) B(1) M(3) P(2) M(2) N(3) Figure 1: Bill of materials used for Question AQ4. assembly schedule (i.e., the master production schedule or MPS) for final product Y is as follows: Week MPS Start for Y 1 2 3 4 5 6 7 8 20 0 20 40 0 20 20 1. [10 marks] You are required to fill in Table 1 to prepare a master schedule for product X. Each time when the firm assembles the product, the firm always uses the fixed period of two rule to make X. The firm's assembly time for product X is 1 week. The beginning inventory for X is 82 units; the forecast and promised customer orders for this final product are provided in Table 1. 2. [8 marks] Use your master schedule in Table 1 to develop material requirements plan (MRP) for subassembly A. Note that you are required to finish the MRP tablei.e., Table 2 on page 6-in which you can find the present on-hand quantity (i.e., the beginning inventory), lead time, lot-size policy, and scheduled receipts for subassembly A. 3. [8 marks] Develop MRP for component M. Note that you are required to finish the MRP table i.e., Table 3 on page 6-in which you can find the present on-hand quantity (i.e., the beginning inventory), lead time, lot-size policy, and scheduled receipts for component M. BUS 2211: Operations Management 5 The Second Term, 2021-2022 Week MPS Start for X Subassembly A Gross Requirement Scheduled Receipts Projected On Hand Net Requirements PO Receipts PO Releases 1 2 3 4 5 6 7 8 70 60 70 Lot-sizing policy: lot-for-lot; Lead time: 1 week; Present on hand: 70; Scheduled receipts: 60 units in Week 1. Table 2: MRP table for Question AQ4. Table 2: MRP table for Question AQ4. Week Component M Gross Requirement Scheduled Receipts Projected On Hand Net Requirements PO Receipts PO Releases 1 2 3 4 Lot-sizing policy: Lot size = 5 6 7 8 200 units; Lead time: 2 weeks; Present on hand: 50; Scheduled receipts: 200 units in Week 2. Table 3: MRP table for Question AQ4. 4. [4 marks] Calculate the total inventory cost for component M during the eight weeks. Note that, for each week, the inventory cost includes a fixed ordering cost and a holding cost. We assume that the per order fixed ordering cost is $300/order, and the unit holding cost is $1 per item per week. The fixed cost is incurred each time when the firm places an order. The holding cost is calculated according to the number of remaining items at the end of each week.