Question: Additional Problem - Increasing Lead Time: You are the production control manager at Advanced Tech Manufacturing. Queue time is currently long in your production area

 Additional Problem - Increasing Lead Time: You are the production control

Additional Problem - Increasing Lead Time: You are the production control manager at Advanced Tech Manufacturing. Queue time is currently long in your production area and is causing high levels of WIP inventory and production is behind schedule. Part D is a new component that you are scheduled to begin manufacturing in the next two weeks. You want to give yourself some buffer time for completing the parts and you are exploring the decision to increase the material D lead time from 2 weeks to 3 weeks. The first MRP worksheet on the left shows the current planning data with a 2 week lead time. a) Calculate the "projected order quantity in-process (PAB + in-process orders (qty)) and "projected WIP inventory (\$)" in the table. Assume that the standard per-unit cost of part D is $100. Notes: - Planned order completed" is a new row that I added to hopefully make the problem more clear. It is simply the period that the order in the "planned order release" column will be completed. - "Projected order quantity in-process" is the total quantity of all orders that have been released to production (manufacturing) for the given period. You should assume that order releases occur at the beginning of the week (8:00am Monday) and orders are completed at the beginning of the week (8:00am Monday). An order with a 2 week lead time will be in-process for two weeks - not three! - You will calculate the "Projected WIP inventory (\$)" by multiplying the standard cost times the number of units in-process. b) The production control manager increases the lead time from 2 weeks to 3 weeks for part D and then runs MRP. What will the MRP worksheet look like after MRP? Complete the table including the new quantity in-process and wip inventory (\$) rows. c) Will the production control manager be better off by increasing the lead time from 2 weeks to 3 weeks? Why or why not? Be specific

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