Assignment #5 Material Requirement Planning

Our strategy is to operate JIT. All suppliers are certified.

Suppliers are capable of delivering orders within 24 hours.

We operate 5 days per week; we shut down for 14 holidays.

Today marks the start of a 12-month production schedule.

Manufacturing requirement per year = 516,600 finished goods units of XWFs; equal production scheduled for each work day; no seasonality.

Six (6) LBT assemblies are required for one (1) XWF

Requirements for each LBT assembly and the beginning inventories of each component:

3 of part #50; inventory = 89,000; 131,500 to be delivered in 24 hours

2 of part #60; inventory = 58,000; 39,000 to be delivered in 24 hours

8 of part #70; inventory = 120,000; 120,000 to be delivered in 24 hours

5 of part #80; inventory = 171,000; 280,000 to be delivered in 24 hours

Your job is to get components required to meet the production schedule. Factoring in the inventories and amounts on-order shown above, calculate:

1. The amount of each component needed to be purchased for week No. 1; a 5-day week, having no holidays.
2. The additional amounts of each component required for the next 8 weeks, a time period which includes 4 holidays.
3. The additional amounts of each component required for the balance of the year (beyond the 9 weeks above).

Note: Assume zero (0) component inventories at end of 12 months. Assume no losses; 100% yield. Show your math work.