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MATERIALS MANAGEMENT ( 3 * 7 = 2 1 marks, 3 marks for each component ) A manufacturing organization needs to plan the materials required

MATERIALS MANAGEMENT (3*7=21 marks, 3 marks for each component)
A manufacturing organization needs to plan the materials required for the next six weeks for the
manufacture of its end-product (Product A), as per a master production schedule. In addition to the
end product, there is an independent requirement of Component C, as it is sold as a spare in the
market. The master production schedule for both the end product and the spares are given in Table
1. In order to assemble one unit of Product A, Components B to G are required. Figure 1 shows the
product structure. In the figure, the number alongside each component denotes the number of each
component required to assemble its immediate parent. An extract of the inventory status (Table 2)
reveals the inventory on hand. There are no pending orders for delivery. Different lot-sizing rules are
used for the components of Product A. Moreover, the components have different lead times. All this
information is available in Table 2. Perform an MRP exercise to estimate the quantity and timing of
the components required for the manufacture of Product A as per the MPS.

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