Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sudden Brakes, a bicycle shop sells and services bicycles. Due to the weeklong Ragbrai event that happens in third week of July of that year,

Sudden Brakes, a bicycle shop sells and services bicycles. Due to the weeklong Ragbrai event that happens in third week of July of that year, there have been heavy demands for brake assemblies as people start training for the event right from the first week of May. May has five weeks, June has four weeks. A brake assembly for a bicycle is made of two units of A and four units of B. B is made of two units of D. A is made of three units of C and four of D. Unit D is made of 2 units of E. All units have a lead time of one week except D which takes two weeks; Suda, the owner expects that his demand would be 250 units of brake assemblies each other week starting from the beginning week of May and expects an increase of 50% during the event. He wants to have a safety stock of 125 units of the brake assembly and has 400 units as initial inventory. All components as procured as lot-for-lot.

a) Show the BOM with levels as a product structure.

b) Given this information, please complete the Materials Requirements Plan for item A and all of its dependent parts.

c) Once you have completed the MRP for the situation at ABC, review your result. Please explain what decisions must be made immediately in order to enact the plan. What issues must be anticipated for later in the planning horizon? How are these decisions related to the MRP you have created? Ten sentences or less, please!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Managers Interpreting Accounting Information For Decision Making

Authors: Paul M. Collier

5th Edition

111900294X, 978-1119002949

More Books

Students also viewed these Accounting questions

Question

List and describe the content of a letter of intent.

Answered: 1 week ago

Question

What is the current year you are evaluating?

Answered: 1 week ago