12. Atlas Wrench Company was having problems with the sensitivity of its MRP system. The following records are typical of its planning system. The two records are for the Z Wrench and for one of its components, the Z Shaft. There is one Z Shaft used in each Z Wrench.

Week Z Wrench 1 2 3 4 5 6 Gross requirements 2 20 5 1 3 45 Scheduled receipts Projected available balance 26 24 4 4 3 0 0 Planned order release 5 45 POQ = 3 weeks; LT = 2 weeks; SS = 0.

10. The following MRP record is for an item purchased from the K. C. Jones company, a supplier toAjax Diesel. The purchase quantity is 45 units. The history on K. C. Jones’s delivery lead time shows an average lead time of three weeks. Sometimes orders from K. C. Jones show up a week late. Complete the following MRP record so that shortages do not occur even if K. C. Jones is late by one week.

Week 1 2 3 4 5 6 7 8 Gross requirements 33 12 23 37 26 3 8 31 Scheduled receipts 45 Projected available balance 60 Planned order release Problems 241 Week Z Shaft 1 2 3 4 5 6 Gross requirements 5 45 Scheduled receipts 5 Projected available balance 3 3 3 3 0 0 0 Planned order release 45 POQ = 3 weeks; LT = 3 weeks; SS = 0.

a. What happens if the gross requirement for the Z Wrench in week 2 drops to 19? Are there any problems?