Q4: M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting manufacturer supplies the wheels to the M/S XYZ Company through a purchase contract. The sub-contracting company initially purchases aluminium billets as raw material and manufactures wheels by forming each billet into wheel rims. Both the rims (front and rear) are assembled with spokes, front and rear hubs. Front wheels comprise a front rim, spokes and a front hub. Rear wheels comprise a rear rim, 24 spokes and a rear hub.

Q) Referring to table 4(i) and 4(ii), complete the Material Requirements Planning (MRP) and determine when to Purchase Orders placed for the spokes.

Table 4 (i)

Table (1) 14 12 13 15 16 17 80 70 90 120 100 85 50 40 30 125 . . week Demand for the bikes Demand of Front Rim The demand of Rear Rim 70 60 80 . Table (ii) Lead Stock on Hand Batch Size Safety Stock Time Part/Compone nt Bike Front wheel Rear wheel 1 180 100 0 1 150 120 100 1 80 150 125 Front Rim 2 100 150 100 Rear Rim 2 200 100 100 Front Hub 1 100 150 50 1 140 100 50 Rear Hub Spokes 1 8600 3,000 1,100