Zurn makes various plumbing products such as fixtures, faucets, drainage equipment, and valves (under the Wilkins brand name). The plant manager is concerned with excessive amounts of inventory of parts in the plant. The materials manager has been tasked to identify if these inventories can be reduced. Zurn uses an accounting software, which also has an MRP module. The materials manager has chosen a popular and reliable pressure vacuum breaker valve (backflow preventer), Model 720A, to study. Model 720A consists of various parts, most made in the plant but some bought from suppliers, both domestic and Asian. The BOM and assembly chart for 720A are displayed below. Note that there is a repair kit for Model 720A (in the bottom of the BOM). This is used by some contractors to repair a faulty installed Model 720A and replaces only the internal parts of the pressure valve. The weekly forecast demands for 720A and repair kit for the next quarter (13 weeks) are fairly constant: Item 720A repair kit Weekly demand (units) 1154 135 To save time, the materials manager has decided to look at the requirements plans for only the following Page 579 components: body, plastic washer, and ball valves. In addition to Model 720A and repair kit, some of these components are used in other valves as well. The weekly forecast demands for these components for the next quarter (13 weeks) are fairly constant: Item body plastic washer ball valve Weekly demand (units) 804* 2,265 12 * only weeks 9-13 WILKINS MODEL 720A a N. companny Pressure Vacuum Breakers 2 1/2" to 1" ITEM DESCRIPTION PART NO. NO. CANOPY SCREW 721-11 2 CANOPY 721-3 721-20 3. BONNET PLASTIC WASHER O-RING 721A-12 WK-138N LOAD NUT & GUIDE 721-90 7. LOAD WASHER 721-80 8 DISC UPPER 721A-34 POPPET 721-30 10 SPRING 721-33 17 11 SCREW 721-11A 12 LOWER DISC 7218-34 GUIDE SPIDER NUT, HEX 13 721-31 721-9A 14 15 TEST COCK 18-860 16 BALL VALVE 1/2 TAP 12-850T BALL VALVE 314 TAP 34-850T 10 BALL VALVE 1 TAP 1-850T 17 POPPET ASSEMBLY 721-300 18 SPIDER ASSEMBLY 721-310 11 12 13 18 14 REPAIR KITS 16 RK1-720A REPAIR KIT MODEL 720A, 1/2", 3/4 & 1 PART NO. QTY. DESCRIPTION 721A-12 PLASTIC WASHER O-RING WK-138N 15 721-33 SPRING 721-300 POPPET ASSEMBLY 15 721-310 SPIDER ASSEMBLY Some more information about these five items is as follows: Item Lead Time (weeks) Safety Stocks Lot Size Currently On Hand Model 720A L4L 8,600 Repair kit 1 360 L4L 434 Body 50,000 15,536 Plastic washer 9,000 55,000 16,680 Ball valve 10,300 9,387 Questions a. What are the requirements for these five items for the next 13 weeks? b. Is Zurn carrying too much inventory? (Hint: Look at on-hand, safety stocks, and lot sizes.) 00 Zurn makes various plumbing products such as fixtures, faucets, drainage equipment, and valves (under the Wilkins brand name). The plant manager is concerned with excessive amounts of inventory of parts in the plant. The materials manager has been tasked to identify if these inventories can be reduced. Zurn uses an accounting software, which also has an MRP module. The materials manager has chosen a popular and reliable pressure vacuum breaker valve (backflow preventer), Model 720A, to study. Model 720A consists of various parts, most made in the plant but some bought from suppliers, both domestic and Asian. The BOM and assembly chart for 720A are displayed below. Note that there is a repair kit for Model 720A (in the bottom of the BOM). This is used by some contractors to repair a faulty installed Model 720A and replaces only the internal parts of the pressure valve. The weekly forecast demands for 720A and repair kit for the next quarter (13 weeks) are fairly constant: Item 720A repair kit Weekly demand (units) 1154 135 To save time, the materials manager has decided to look at the requirements plans for only the following Page 579 components: body, plastic washer, and ball valves. In addition to Model 720A and repair kit, some of these components are used in other valves as well. The weekly forecast demands for these components for the next quarter (13 weeks) are fairly constant: Item body plastic washer ball valve Weekly demand (units) 804* 2,265 12 * only weeks 9-13 WILKINS MODEL 720A a N. companny Pressure Vacuum Breakers 2 1/2" to 1" ITEM DESCRIPTION PART NO. NO. CANOPY SCREW 721-11 2 CANOPY 721-3 721-20 3. BONNET PLASTIC WASHER O-RING 721A-12 WK-138N LOAD NUT & GUIDE 721-90 7. LOAD WASHER 721-80 8 DISC UPPER 721A-34 POPPET 721-30 10 SPRING 721-33 17 11 SCREW 721-11A 12 LOWER DISC 7218-34 GUIDE SPIDER NUT, HEX 13 721-31 721-9A 14 15 TEST COCK 18-860 16 BALL VALVE 1/2 TAP 12-850T BALL VALVE 314 TAP 34-850T 10 BALL VALVE 1 TAP 1-850T 17 POPPET ASSEMBLY 721-300 18 SPIDER ASSEMBLY 721-310 11 12 13 18 14 REPAIR KITS 16 RK1-720A REPAIR KIT MODEL 720A, 1/2", 3/4 & 1 PART NO. QTY. DESCRIPTION 721A-12 PLASTIC WASHER O-RING WK-138N 15 721-33 SPRING 721-300 POPPET ASSEMBLY 15 721-310 SPIDER ASSEMBLY Some more information about these five items is as follows: Item Lead Time (weeks) Safety Stocks Lot Size Currently On Hand Model 720A L4L 8,600 Repair kit 1 360 L4L 434 Body 50,000 15,536 Plastic washer 9,000 55,000 16,680 Ball valve 10,300 9,387 Questions a. What are the requirements for these five items for the next 13 weeks? b. Is Zurn carrying too much inventory? (Hint: Look at on-hand, safety stocks, and lot sizes.) 00 Zurn makes various plumbing products such as fixtures, faucets, drainage equipment, and valves (under the Wilkins brand name). The plant manager is concerned with excessive amounts of inventory of parts in the plant. The materials manager has been tasked to identify if these inventories can be reduced. Zurn uses an accounting software, which also has an MRP module. The materials manager has chosen a popular and reliable pressure vacuum breaker valve (backflow preventer), Model 720A, to study. Model 720A consists of various parts, most made in the plant but some bought from suppliers, both domestic and Asian. The BOM and assembly chart for 720A are displayed below. Note that there is a repair kit for Model 720A (in the bottom of the BOM). This is used by some contractors to repair a faulty installed Model 720A and replaces only the internal parts of the pressure valve. The weekly forecast demands for 720A and repair kit for the next quarter (13 weeks) are fairly constant: Item 720A repair kit Weekly demand (units) 1154 135 To save time, the materials manager has decided to look at the requirements plans for only the following Page 579 components: body, plastic washer, and ball valves. In addition to Model 720A and repair kit, some of these components are used in other valves as well. The weekly forecast demands for these components for the next quarter (13 weeks) are fairly constant: Item body plastic washer ball valve Weekly demand (units) 804* 2,265 12 * only weeks 9-13 WILKINS MODEL 720A a N. companny Pressure Vacuum Breakers 2 1/2" to 1" ITEM DESCRIPTION PART NO. NO. CANOPY SCREW 721-11 2 CANOPY 721-3 721-20 3. BONNET PLASTIC WASHER O-RING 721A-12 WK-138N LOAD NUT & GUIDE 721-90 7. LOAD WASHER 721-80 8 DISC UPPER 721A-34 POPPET 721-30 10 SPRING 721-33 17 11 SCREW 721-11A 12 LOWER DISC 7218-34 GUIDE SPIDER NUT, HEX 13 721-31 721-9A 14 15 TEST COCK 18-860 16 BALL VALVE 1/2 TAP 12-850T BALL VALVE 314 TAP 34-850T 10 BALL VALVE 1 TAP 1-850T 17 POPPET ASSEMBLY 721-300 18 SPIDER ASSEMBLY 721-310 11 12 13 18 14 REPAIR KITS 16 RK1-720A REPAIR KIT MODEL 720A, 1/2", 3/4 & 1 PART NO. QTY. DESCRIPTION 721A-12 PLASTIC WASHER O-RING WK-138N 15 721-33 SPRING 721-300 POPPET ASSEMBLY 15 721-310 SPIDER ASSEMBLY Some more information about these five items is as follows: Item Lead Time (weeks) Safety Stocks Lot Size Currently On Hand Model 720A L4L 8,600 Repair kit 1 360 L4L 434 Body 50,000 15,536 Plastic washer 9,000 55,000 16,680 Ball valve 10,300 9,387 Questions a. What are the requirements for these five items for the next 13 weeks? b. Is Zurn carrying too much inventory? (Hint: Look at on-hand, safety stocks, and lot sizes.) 00