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.

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

b. How can Atlas Wrench deal with situations like the one that occurs here?

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Z Wrench Week 3 4 5 6 1 3 45 35 22 1 2 20 Gross requirements Scheduled receipts Projected available balance 26 24 4 Planned order releases 5 POQ-3 weeks; LT = 2 weeks; SS = 0. 4 3 0 0 45 Z Shaft Gross requirements Scheduled receipts Projected available balance 3 553 Week 1 2 3 4 4 5 6 45 3 3 0 0 0 Planned order releases 45 POQ = 3 weeks: LT = 2 weeks: SS = 0.