5. Dixon Plastics has 100 customers. It produces make-to-order products using time-phased material planning and an MRP-based shop-floor system. Amdur Electronics, one of its larger customers, accounts for 20 percent of total sales. It promises to double its volume with Dixon within two years and to communicate its detailed planning to Dixon via electronic data exchange (EDI).

The plans would be frozen for the next week, subject to percent in weeks 2 through 6, and open to revision after six weeks. Any raw material purchased by Dixon to meet requirements in the next six weeks would be guaranteed against obsolescence by Amdur Electronics.

a. What changes in MPC design options would Dixon require if total manufacturing lead time was one day?

b. What if the total manufacturing lead time is six weeks?

; 15 2LT Problems 467