Audio Products, Inc., produces two AM/FM/CD players for cars. The radio/CD units are identical, but the mounting hardware and finish trim differ. The standard model fits intermediate and full-size cars, and the sports model fits small sports cars.

Audio Products handles the production in the following way. The chassis (radio/ CD unit) is assembled in Mexico and has a manufacturing lead time of two weeks. The mounting hardware is purchased from a sheet steel company and has a three-week lead time. The finish trim is purchased as prepackaged units consisting of knobs and various trim pieces from a Taiwan electronics company with offices in Los Angeles. Trim packages have a two-week lead time. Final assembly time may be disregarded because adding the trim package and mounting are performed by the customer.

2.

Audio Products supplies wholesalers and retailers, which place specific orders for both models up to eight weeks in advance. These orders, together with enough additional units to satisfy the small number of individual sales, are summarized in the following demand schedule:

There are currently 50 radio/CD units on hand but no trim packages or mounting hardware.

1. Prepare a material requirements plan to meet the demand schedule exactly. Specify the gross

   and net requirements, on-hand amounts, and the planned order release and receipt periods for the radio/CD chassis, the standard trim and sports car model trim, and the standard mounting hardware and the sports car mounting hardware. Assume all orders are L4L.

2. If the management wants to maintain a safety stock of 5 units of each product & component; & the standard trims and the sports trims are to be ordered in lots of 250 units, show the modified plan?

1 2 3 - MODEL Standard model Sports model WEEK 4 5 300 6 7 8 400 200 100