The ABC Company assembles and sells a product called an "A." The "A" is made up of two units of a subassembly called "E" and three units of a material called "D" ("D" is purchased from a supplier), and two units of a subassembly called "C." The "E" subassembly is prepared at ABC from one unit of "F" (purchased from a supplier) and two units of a purchased material named "G." Each "C" is assembled in a process that includes one unit of "E."

As we begin week one of operations planning at ABC, there are no units of "A" available in finished goods inventory. It usually takes two weeks to complete assembly of an order for "A," and the units are ordered as needed (in other words, the lot-sizing rule is "lot-for-lot"). There are 400 units of item "C" in inventory as week one begins, and another 150 units are scheduled to arrive during week one. It takes our shop floor two weeks to complete an order of item "C." Item "C" is also ordered using a "lot-for-lot" policy. There are 400 units of item "D" in inventory at the beginning of week one, and a shipment of 450 units is expected to arrive during week 2. It takes our supplier two weeks to deliver an order of item "D." Item "D" is ordered in packages containing 700 units each.

There are 235 units of item "E" in inventory at the beginning of week one. Unit "E" takes three weeks to assemble at ABC, and they are produced in batches of 700 units. There are 700 units of item "E" scheduled to arrive from the shop floor at the beginning of week 1 in the current schedule. There are currently 700 units of item "F" in inventory at ABC. It takes two weeks for the supplier to deliver an order of "F" to ABC, and the supplier permits ABC to order on a "lot-for-lot" basis. Although there are no units of "G" in inventory currently, ABC is expecting delivery of 1400 units during week 1. The lead time for item "G" is one week, and the supplier allows ABC to order the item on a "lot-for-lot" basis.

The Master Production Schedule expresses a need for 120 units of item "A" in weeks 3, 4, 5, and 8 of our current plan.

a) Given this information, please complete the Materials Requirements Plan for item "A" and all of its dependent parts. You may use the printed sheets available from your instructor.

b) 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!

c) Let's assume that the immediate decisions you expressed above in (b) have been enacted. On Wednesday morning of week one, you receive a call from the supplier providing "D" to ABC. You are informed that the 450 units expected to arrive during week two have been delayed. They will not arrive until week five. How does this affect your plan? What managerial actions must be taken? On what information is your reaction based? Ten sentences or less, please!