Question
Read the case up through the BOM for product X. Then, use the following information ( and not the remaining information in the case )
Read the case up through the BOM for product X. Then, use the following information (and not the remaining information in the case) to complete the case analysis:
The partial MPS given in the case has an error. Correct the error as you solve the MPS.
Lead time for product X is 1 week.
Relevant data for components A, B, C and D at the start of week 1:
Component | A | B | C | D |
Starting Inventory | 0 | 112 | 212 | 98 |
Lead time (weeks) | 2 | 1 | 1 | 3 |
Lot Size | FOQ = 60 | POQ w/P=4 wks | LFL | FOQ = 100 |
Safety Stock | 0 | 10 | 20 | 0 |
Scrap factor |
|
| 10% |
|
In addition, item D has independent demand of 5 units/week. Also, item A has a scheduled receipt of 60 units for week 1.
In the Assignments section, answer items 1, 2 and 3
There are currently (at the start of week 1) 27 product X left in inventory. The follow- ing represents the product structure for product X: X A B(2) D C(2) The following table gives the relevant data for components A, B, C, and D at the start of week 1: A D 0 Component Starting Inventory Lead Time (weeks) Lot Size Safety Stock B 2 212 1 2 63 2 4 60 250 100 100 0 0 0 0 In addition, component A has a scheduled receipt of 60 units for week 2. Assignment 1. Complete the master schedule for Product X, including the projected available inven- tory and the ATP numbers. 2. From the master schedule for Product X and using the data given for components A, B, C, and D, create MRP grids for each of the components for the next ten weeks. 3. Suppose that a customer for Product X wants three additional units for their order scheduled for week 4. What would you tell them? Specifically, if you cannot promise them the three units for week 4, what is the best that you can do given the information you have. Assume that adequate capacity exists in all the production equipment. Benzie Products Company Benzie Products Company produces several lines of products, but one (they call it prod- uct X) uses unique parts to produce it and the demand is very seasonal. There are some possible variations in the design, so the company tends to use available-to-promise (ATP) logic to master schedule the product. Since the components to produce it are quite expen- sive, the company tries very hard to minimize any inventory of the product or its com- ponents during the seasons with very low sales. Product X is just now entering the low season, and the following chart represents the forecast data and actual customer orders for the next ten weeks: Week 1 2 3 4 5 6 7 8 9. 10 Forecast 25 20 16 16 15 15 13 11 10 9 Customer Orders 27 21 16 13 11 9 7 4 3 2 Master Production Schedule 50 50 50Step by Step Solution
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