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(b) Salalah Electro-Mechanical Company manufactures a product PQR345. The product PQR345 consists of two PQ890 assemblies, three QR432 assemblies and one PR678 assembly. The PQ890

(b) Salalah Electro-Mechanical Company manufactures a product PQR345. The product PQR345 consists of two PQ890 assemblies, three QR432 assemblies and one PR678 assembly. The PQ890 assembly consists of one P456, two Q921 and one Q239. The QR432 assembly consists of three P456, one R478 and two S590.

(i) Prepare a Bill of Material (BOM) product tree for the product PQR345.

(ii) Using Table Q3(b)-1 and Table Q3(b)-2 complete the Material Requirements Planning (MRP)

calculations to determine when the Purchase Orders should be placed for item S590.

Note: The product PQR345 are being sold complete as well as the spare parts (e.g. items QR432, PQ890, R478 etc) are being sold separately also.

Table Q3(b)-1
Week 10 11 12 13 14 15 16
PQR345 70 50 120 60 90 100 40
QR432 100 - - 250 - 150 100

Table Q3(b)-2
Item Lead Time (Weeks) On Hand Batch Size Safety Stock
PQR345 1 200 200 0
QR432 2 200 300 150
S590 2 700 600 350

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