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Assume the company produces product A that is made from components C, D and E. Given the following product structures, master scheduling requirements, and inventory

  1. Assume the company produces product A that is made from components C, D and E. Given the following product structures, master scheduling requirements, and inventory information.
    1. Determine when orders should be released for A, B, C, D and E and the size of those orders. (10 marks)
    2. Discuss the advantages of a MRP system to the selected organization. (05 marks)

Table1: Inventory Records and Master Production Schedule Details

On Hand Scheduled Receipts Lot Size (Multiples) MPS
A 10 0 1 100, period 9
B 95 0 1
C 20 0 20
D 100 0 1
E 200 100, period 3 1

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