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GIANT is a company that produces bicycles and sells them to retailers in China and Hong Kong markets. Flying (Figure 1) is one of
GIANT is a company that produces bicycles and sells them to retailers in China and Hong Kong markets. "Flying" (Figure 1) is one of the bestselling bicycle models and it is made according to the bill of materials (BOM) diagram (Figure 2) shown below. The quantity is also shown at each component, for example in below, Wheel (2u) means 2 units are required in production of one bicycle (1u) and Tire (1u) means 1 unit is required in production of one wheel. Tire Reflector Seat Seat post Sprockets Chain Frame Handlebar Grips Chainrings Pedals Brakes Valve Fork Spokes Rim Level O (Finished product) Bicycle (1u) Bill of materials for a bicycle Level 1 (Components) Wheel (2u) Frame (1u) Handlebar (1u) Seat (lu) Level 2 (Subcomponents) Rim (1u) Tire (1u) Spokes (36u) Reflector (1u) Valves (1u) Pedals (2u) Chainrings (3u) Sprockets (5u) Chain (1u) Brakes (2u) Grips (2u) Seat post (1u) 70 units of model "Flying" are needed in week 3, 150 units in week 5, and 100 units in week 7. The lead time for assembly of Model "Flying" is one week and there is no on-hand inventory. The table below shows additional data for the key components Wheel, Tire, and Spokes. Wheel Tire Spokes Lot size (unit) Lot-for-lot 300 Lot-for-lot (L4L) (L4L) Lead-time (week) 2 Safety stock (unit) 0 0 50 Beginning inventory 40 80 (unit) Scheduled receipts 150 units in 250 units in none week 2 week 3 Tires are sold to a retailer who requires 500 units in week 7, while for Spokes are also sold to a retailer who requires 50 units in week 2, 100 units in week 4 and 80 units in week 7. The minimum production quantity of Spokes is 500 units. a) Based on the given data, calculate the missing values in the MRP worksheets below, a1 to a20. (10 marks) Product: Model "Flying", Lead time: 1 week, On-hand inventory: 0 MPS Data Week number 1 2 3 4 5 6 7 8 Required date 70 150 100 Order release date 70 150 100 Item: Wheel Minimum order quantity: Immediate Parent(s): Week number Gross Requirements Scheduled Receipts Projected on hand Net Requirements Planned order receipts Planned order releases units As BOM 1 2 3 140 (al) 000 0 290 Lot size: Lead time: Safety stock: 5 7 (a2) 200 1010000 290 200 290 200 200 units weeks units 8 0 Item: Tire Minimum order quantity: Immediate Parent(s): Week number Gross Requirements Scheduled Receipts Projected on hand Net Requirements Planned order receipts Planned order releases units As BOM 2 290 40 40 40 (a3) (a4) (a5) Lot size: Lead time: Safety stock: 6 7 200 (a9) (a6) (a7) (a8) 100 100 100 400 (a10) 600 units week units 200 Item: Spokes Minimum order quantity: Immediate Parent(s): Week number Gross Requirements Scheduled Receipts Projected on hand Net Requirements Planned order receipts Planned order releases units AS BOM 2 3 45 (all) (a16) 80 80 80 (a15) 50 (a12) (a17) (a13) (a18) (a14) Lot size: Lead time: Safety stock: (a19) 6 50 50 500 units week units 7 8 80 50 (a20) 80 500
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