Question: 1 . MATERIALS MANAGEMENT ( 3 * 7 = 2 1 marks, 3 marks for each component ) A manufacturing organization needs to plan the

1. MATERIALS MANAGEMENT (3*7=21 marks, 3 marks for each component)
A manufacturing organization needs to plan the materials required for the next six weeks for the manufacture of its end-product (Product A), as per a master production schedule. In addition to the end product, there is an independent requirement of Component C, as it is sold as a spare in the market. The master production schedule for both the end product and the spares are given in Table 1. In order to assemble one unit of Product A, Components B to G are required. Figure 1 shows the product structure. In the figure, the number alongside each component denotes the number of each component required to assemble its immediate parent. An extract of the inventory status (Table 2) reveals the inventory on hand. There are no pending orders for delivery. Different lot-sizing rules are used for the components of Product A. Moreover, the components have different lead times. All this information is available in Table 2. Perform an MRP exercise to estimate the quantity and timing of the components required for the manufacture of Product A as per the MPS.
Figure 1: The Product Structure
Table 1- Master Production Schedule for the Next Six Periods
Period 1 Period 2 Period 3 Period 4 Period 5 Period 6
Product A 1001502001000200
Component C 050600070
Table 2- Inventory Status, Lead Time, and Lot-Sizing Rule
Component On-Hand Lead Time Lot Size
A 1501 Lot for Lot
B 10002 Lot for Lot
C 3001 Lot for Lot
D 75023 periods
E 70063 periods
F 2001400
G 5003500

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