Material Requirements Planning

Complete the following tables by calculating the net requirement, planned order receipt and planned order release for each week. (6 marks)

Bicycle Assemblies

Lot size to order = 400 units

Lead Time = 1 week

Final Assembly -Bicycles	1	2	3	4
Gross requirements	100	500	200	100
Scheduled receipts		400
Projected available 300
Net requirements
Planned order receipt
Planned order release

Wheel Assemblies for above Bicycles

Lot size to order = 800 units

Lead Time = 1 week

2 Wheel Assemblies per bicycle

Wheel assemblies	1	2	3	4
Gross requirements
Scheduled receipts
Projected available 500
Net requirements
Planned order receipt
Planned order release

A company has 4000 different items in inventory and wants to use an ABC analysis for cycle counting purposes. They have the following info to help them (6 marks)

20% of the items can be classified as A items and they are to be cycle counted 1 per month

30% of the items can be classified as B items and they are to be cycle counted every 3 months

C items are to be counted twice a year

The company operates 250 workdays per year

Using the chart below calculate the number of counts per day for each item class and the total counts per day

Classification		Number of Items =4000	Count Frequency per Year	Number of Counts per Year	% of Total Counts	Counts per Day
A
B
C
Total Counts per Year
Workdays per Year
Counts per Day