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Question 3 (30 marks) TCB Limited is a local manufacturer producing subassemblies. MRP planning schedule for one of its Subassembly V is shown as below.

Question 3 (30 marks)

TCB Limited is a local manufacturer producing subassemblies. MRP planning schedule for one of its Subassembly V is shown as below. The ordering lead time is one week.

Subassembly V

Week 0

Week 1

Week 2

Week 3

Week 4

Week 5

Gross requirement

75

50

70

On-hand

40

Net requirement

Planned-order receipt

Planned-order release

Derive the net requirements, planned-order receipts, and planned-order releases to meet the gross requirements. (10 marks)

Discuss whether safety stock shall be included into MRP system by illustrating with real-life example (20 marks)

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