The American Manufacturing Company (AMC) produces computers. The manufacturing process consists of assembling the computer frame (produced by the firm€™s plastic molding department) into a finished frame (purchased from an outside supplier). The company is interested in using material requirements planning to schedule its operations and has asked you to prepare an example to illustrate the technique. The firm€™s sales manager has prepared a 10-week sales forecast for one of the 200 orders per week. AMC has customer orders of 165 units, 120 units, 80 units, and 40 units in weeks 1, 2, 3, and 4, respectively. The computers are assembled in batches of 600. Presently, three such batches are scheduled: one in week 2, one in week 5, and one in week 8.

a. Complete the following time-phased record:

b. Prepare the MRP record for the assembly of the computer using the following record. The final assembly quantity is 600, lead time is 2 weeks, and there is a scheduled receipt in week 2. Note that no inventory is shown for the assembled sunglasses in this record, since it€™s accounted for in the MPS record.

Transcribed Image Text:

WEEK 4 10 CLASSIC MODEL MPS RECORD 1 8 5 6 Forecast Orders Available Available to promise MPS On hand = 150 2.