6. Consider the following three MRP records. Product A comprises two part Bs. One part B requires one part C.

Week Product A 1 2 3 4 5 6 7 8 Gross requirements 10 20 0 40 20 10 0 20 Scheduled receipts Projected available balance 15 5 15 15 5 15 5 5 15 Planned order release 30 30 30 30 Q = 30, SS = 5, LT = 1.

Week Part B 1 2 3 4 5 6 7 8 Gross requirements 60 60 60 60 Scheduled receipts 100 Projected available balance 75 15 115 55 95 95 95 35 35 Planned order release 100 Q = 100, SS = 0, LT = 2.

Week Part C 1 2 3 4 5 6 7 8 Gross requirements 100 Scheduled receipts Projected available balance 0 0 0 0 0 0 0 0 0 Planned order release 100 Q = LFL, SS = Q, LT = 1.

a. What transactions are required to keep the shop on schedule?

b. Assume it takes one week for MRP processing for each level in the bill of materials. What’s product A’s total lead time?

c. If everything went according to plan in week 1, what would the records look like in week 2?

(Assume a new requirement for 20 units of product A in week 9.) What transactions took place in week 1 and/or must take place in week 2 to keep the shop on schedule?

d. Suppose product A is to be built in a cell (lead time is one week), and parts B and C are to be made into phantom items. What happens to transaction counts and total lead time?

468 Chapter 12 Strategy and MPC System Design