a. What are the requirements for these five items for the next 13 weeks?

b. Is Zurn carrying too much inventory? 

Zurn makes various plumbing products such as fixtures, faucets, drainage equipment, and valves (under the Wilkins brand name). The plant manager is concerned with excessive amounts of inventory of parts in the plant. The materials manager has been tasked to identify if these inventories can be reduced. Zurn uses an accounting software, which also has an MRP module. The materials manager has chosen a popular and reliable pressure vacuum breaker valve (backflow preventer), Model 720A, to study. Model 720A consists of various parts, most made in the plant but some bought from suppliers, both domestic and Asian. The BOM and assembly chart for 720A are displayed below.

Note that there is a repair kit for Model 720A (in the bottom of the BOM). This is used by some contractors to repair a faulty installed Model 720A and replaces only the internal parts of the pressure valve. The weekly forecast demands for 720A and repair kit for the next quarter (13 weeks) are fairly constant:

To save time, the materials manager has decided to look at the requirements plans for only the following components: body, plastic washer, and ball valves. In addition to Model 720A and repair kit, some of these components are used in other valves as well. The weekly forecast demands for these components for the next quarter (13 weeks) are fairly constant:

Some more information about these five items is as follows:

Transcribed Image Text:

Item 720A repair kit Weekly demand (units) 1154 135 WILKINS T20 A