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