Question: AQ 4 . MRP ( 1 9 marks ) A firm uses subassemblies A and C and components B , D and E to assemble
AQ MRP marks
A firm uses subassemblies A and C and components B D and E to assemble the final product F; see a bill of materials in Figure
Figure : Bill of materials used for Question AQ
marks You are required to fill Table to prepare a master schedule for F Each time when the firm assembles F the firm always uses the "fixed period of rule to make F The firm's assembly time for F is one week. The beginning inventory for F is ; the forecast and promised customer orders for this end item are provided in this table.
Table : MPS table for the end item F in Question AQ
marks Use the master production schedule for F in Table to develop material requirements plans MRPs for subassembly A and component B Note that you are required to finish the MRP tableie Table in which you can find the present onhand quantity ie the beginning inventory lead time, ordering rule and scheduled receipts for each of the subassembly A and component B For subassembly C the onhand inventory is zero, there is no scheduled receipt, lotsizing policy is lotforlot, and lead time is week.
Table : MRP table for Question AQ
mathbf marks You are required to calculate the total inventory cost for the component B during the eight weeks, using the results in Question Note that, for each week, the inventory cost may include a fixed cost and a holding cost. We assume that the per order fixed cost is $ order and the unit holding cost is $ per item per week. The fixed cost is incurred each time when the firm places an order. More precisely, if the firm places an order at the beginning of a week, then the firm incurs the fixed cost for this week; otherwise, the fixed cost for the week is zero. The holding cost is calculated according to the number of remaining items at the end of each week. For example, if units of the component B are remaining at the end of a week, then the holding cost for this week is $ times $ marks Assume that the lotsizing policy for component B is changed from "lotforlot" to "lot size of units". You are required to consider the following two questions:
a Fill in the following table to redo the MRP scheduling for the component B;
b Calculate the total inventory cost for the policy of lot size of units.
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