M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting...

  

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M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting manufacturer supplies the wheels to the M/S XYZ Company through a purchase contract. The sub-contracting company initially purchases aluminium billets as raw material and manufactures wheels by forming each billet into wheel rims. Both the rims (front and rear) are assembled with spokes, front and rear hubs. Front wheels comprise a front rim, 24 spokes and a front hub. Rear wheels comprise a rear rim, 24 spokes and a rear hub. (i) Draw the Bill of Material (BOM) tree for the front and rear wheels. (ii) Referring to table 4(i) and 4(ii), complete the Material Requirements Planning (MRP) and determine when to Purchase Orders placed for the spokes. Table 4 (i) Week Demand for the bikes Demand of Front Rim The demand of Rear Rim Part/Component Bike Front wheel Rear wheel Front Rim Rear Rim Front Hub Rear Hub Spokes 12 80 50 Table 4 (ii) Lead Time 1 1 1 2 2 1 1 1 13 70 70 14 90 40 60 Stock on Hand Batch Size #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A 100 120 150 150 100 150 100 3,000 15 120 30 Safety Stock 0 100 125 100 100 50 50 1,100 16 100 - 80 17 85 125 M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting manufacturer supplies the wheels to the M/S XYZ Company through a purchase contract. The sub-contracting company initially purchases aluminium billets as raw material and manufactures wheels by forming each billet into wheel rims. Both the rims (front and rear) are assembled with spokes, front and rear hubs. Front wheels comprise a front rim, 24 spokes and a front hub. Rear wheels comprise a rear rim, 24 spokes and a rear hub. (i) Draw the Bill of Material (BOM) tree for the front and rear wheels. (ii) Referring to table 4(i) and 4(ii), complete the Material Requirements Planning (MRP) and determine when to Purchase Orders placed for the spokes. Table 4 (i) Week Demand for the bikes Demand of Front Rim The demand of Rear Rim Part/Component Bike Front wheel Rear wheel Front Rim Rear Rim Front Hub Rear Hub Spokes 12 80 50 Table 4 (ii) Lead Time 1 1 1 2 2 1 1 1 13 70 70 14 90 40 60 Stock on Hand Batch Size #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A 100 120 150 150 100 150 100 3,000 15 120 30 Safety Stock 0 100 125 100 100 50 50 1,100 16 100 - 80 17 85 125