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One unit of A is made of three units of B. one unit of C, and two units of D. Bis composed of two units
One unit of A is made of three units of B. one unit of C, and two units of D. Bis composed of two units of E and one unit of D. Ci made of one unit of B and two units of EE is made of one unit of F Items B, C, E, and F have one week lead times: A and Dhave lead times of two weeks Assume that lot-for-lot (L4L) lot sizing is used for Items A, B, and F; lots of size 50, 50, and 175 are used for Items C, D, and E. respectively. Items C, E, and F have on hand (beginning) inventories of 10,50, and 160, respectively, all other items have zero beginning inventory. We are scheduled to receive 10 units of A in Week 2.50 units of Ein Week 1, and also 40 units of Fin Week 1. There are no other scheduled receipts. If 30 units of A are required in Week 8, use the low-level-coded bill of-materials to find the necessary planned-order releases for all components. Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates. (Leave the cells blank, whenever zero (O) is required.) 2 3 5 6 7 Item: A OHO LT 2 SS: 0 Q: L4L Period: Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Uom Item A OHO LT 2 SS.O Q.14 Period: Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item C OH 10 LT 1 SSO 0:50 Gross requirements Scheduled receipts Projected available balance Net requiremento Planned order receipts Planned order releases Item: B OHO LT 1 SS 0 Q LUL Gross requirements Scheduled receipts Projected available balance Not requirements Planned order receipts Planned order releases Item: D OH: 0 LT 2 SS 0 Q: 50 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item E OH, 50 LT 1 SSO Q: 175 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements Item F Scheduled receipts OH 160 Projected available balance LT: 1 SS0 Net requirements QL4L Planned order receipts Planned order releases MRP Inventory Costs - 5 marks The cost of ordering for the company is $30 per order and the cost of holding is $0.10 per unit per period. Based on the order quantities and inventory quantities in the MRP plan in question 1 answer the following: 1. What are the total inventory costs for each of the individual components (list each component and the related inventory cost) 4 marks 2. What is the total inventory cost for the entire MRP plan?. 1 mark MRP Report - 10 marks Provide a summary report for the business owner based on the previous 2 questions above and the MRP plan generated in question 1. Ensure the report clearly outlines your thoughts and includes the following points: 1. Describe the order schedule as well as the associated costs. 2. How do you feel the company could be more efficient with its inventory? What are some of the advantages of this MRP plan and what are some of the disadvantages of this MRP plan? 3. What would you be doing to decrease the inventory costs with this MRP plan? One unit of A is made of three units of B. one unit of C, and two units of D. Bis composed of two units of E and one unit of D. Ci made of one unit of B and two units of EE is made of one unit of F Items B, C, E, and F have one week lead times: A and Dhave lead times of two weeks Assume that lot-for-lot (L4L) lot sizing is used for Items A, B, and F; lots of size 50, 50, and 175 are used for Items C, D, and E. respectively. Items C, E, and F have on hand (beginning) inventories of 10,50, and 160, respectively, all other items have zero beginning inventory. We are scheduled to receive 10 units of A in Week 2.50 units of Ein Week 1, and also 40 units of Fin Week 1. There are no other scheduled receipts. If 30 units of A are required in Week 8, use the low-level-coded bill of-materials to find the necessary planned-order releases for all components. Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates. (Leave the cells blank, whenever zero (O) is required.) 2 3 5 6 7 Item: A OHO LT 2 SS: 0 Q: L4L Period: Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Uom Item A OHO LT 2 SS.O Q.14 Period: Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item C OH 10 LT 1 SSO 0:50 Gross requirements Scheduled receipts Projected available balance Net requiremento Planned order receipts Planned order releases Item: B OHO LT 1 SS 0 Q LUL Gross requirements Scheduled receipts Projected available balance Not requirements Planned order receipts Planned order releases Item: D OH: 0 LT 2 SS 0 Q: 50 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item E OH, 50 LT 1 SSO Q: 175 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements Item F Scheduled receipts OH 160 Projected available balance LT: 1 SS0 Net requirements QL4L Planned order receipts Planned order releases MRP Inventory Costs - 5 marks The cost of ordering for the company is $30 per order and the cost of holding is $0.10 per unit per period. Based on the order quantities and inventory quantities in the MRP plan in question 1 answer the following: 1. What are the total inventory costs for each of the individual components (list each component and the related inventory cost) 4 marks 2. What is the total inventory cost for the entire MRP plan?. 1 mark MRP Report - 10 marks Provide a summary report for the business owner based on the previous 2 questions above and the MRP plan generated in question 1. Ensure the report clearly outlines your thoughts and includes the following points: 1. Describe the order schedule as well as the associated costs. 2. How do you feel the company could be more efficient with its inventory? What are some of the advantages of this MRP plan and what are some of the disadvantages of this MRP plan? 3. What would you be doing to decrease the inventory costs with this MRP plan
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