A manufacturing company produces a product (labelled as product A) that comprises a number of different components with the following description. Item D is made of two units of item B and two units of item C. Item B is made of one unit of item E and two units of item F. Item C requires one unit of item F, while item E requires three units of item F The end product A is made of three units of item B, two units of item D, and two units of item E.

The on-hand inventories for items B, C, D, and E are 30, 40, 10, and 25 units respectively. The company has a scheduled receipt from its supplier for item F of 50 units in Week 5. The production lead-time for items A, E, and F is one week; for items C and D the lead-time is two weeks, and for item B the lead-time is three weeks. Lot-for-lot production quantity is applied for items C, while the lot sizes for producing items A, B, D, E, and F are the multiple of 25, 25, 50, 50 and 125 units respectively. The customer places an order of 20 units of product A to be delivered in Week 15.

a. Draw the low-level coded Bill of Material for product A 

b. Construct the complete MRP schedule for the above order to determine the planned order releases for all items. Can the company fulfill the customer’s order?

c. Construct another complete MRP schedule for the above order to determine the planned order releases for all items without any on-hand inventory and scheduled receipt for all items. Can the company fulfill the customer’s order? 

d. If the company, due to limited production capacity, can only produce 125 units of item F per week, can the company fulfill the customer’s order? Show the revised MRP schedule for item F and other items that are affected by the change to support your answer 

Answer rating: 100% (QA)

Answer Answer d If production lead time of item D is r... View the full answer