Given the following product tree (the quantities are shown between brackets in the next page):

The master production schedule calls for production of 40 X in period 1, 300 in period 5, 600 in period 6, 100 in period 7. There is a scheduled receipt of 1500 of C in week 3.

1. Calculate the MRP-explosion and write the steps of calculation (20 Marks)

2. Discuss the limitations of MRP system.

Operations Management (BUSS-B 1006) - Summer - 2021-CW (2) - QP 2) Task 2 (90 Marks) Part A: (40 Marks) Given the following product tree (the quantities are shown between brackets in the next page): A (1) B (2) C (3) C (1) The following data for X, A, B and C is as follows: Stock Safety Stock Lot Size Lead Time 50 10 1 1 A 330 30 50 3 B 20 3 270 2000 50 100 250 3 The master production schedule calls for production of 40 X in period 1,300 in period 5, 600 in period 6, 100 in period 7 There is a scheduled receipt of 1500 of Cin week 3. 1. Calculate the MRP-explosion and write the steps of calculation (20 Marks) (20 Marks) 2. Discuss the limitations of MRP system. MEC_AMO TEM_035_02 Page 2 of 16