1. Is Doug's Dens a business that can effectively utilize MRP for planning its inventory? Why or why not?
2. Develop a material requirements plan for the next 8 weeks using the information in Tables 7.25 and 7.26, and Figure 7.18.
In table 7.25 Master Schedule

In Table 7.26Current Ordering Policy for Doug's Dens
Part/SubassemblyOrder Quantity/Reorder Point
Corner brackets ......................................Q= 1,000; R = 500
6-foot 2x4 .............................................Q = 4,000; R= 1,000
2-inch nails ...........................................Q= 10,000; R = 1,000

3. Discuss how Doug should go about implementing MRP. What type of training should he provide? What kind of software and equipment? How long should he allow for the implementation?
4. A business consultant suggested that Doug's Dens build a master schedule at the subassembly level (i.e., for the floor, roof, and frame assemblies) rather than at the finished product level (i.e., Fido's Favorite and Charlie's Castle). The consultant said that this is the approach used by Dell (Doug idolizes Michael Dell as a role model). Discuss whether this approach makes sense and explain why or why not.

Transcribed Image Text:

Month Week Fido's Favorite Charlie's Castle I5 10 10 20 15 12 10 12 10 10 12 10 10 10 12 Fido's Favorite BASIC floor sub assembly Frame sub-assembly SASIC roof sub-assembly 8 corner brackets 24 2-inch nails 12 6-loot 2x43 Charlie's Castle DELUXE floor sub-assembly Frame sub-assemby DELUXE roof sub-assembly corner brackets 24 2-Inch nails 12 6-foot 2x43