Question: QUESTION 1 (MATERIAL REQUIREMENTS PLANNING) - 34 Marks PART A A premium product, named AYEE, is produced at Nice Things Ltd. It is constructed as

QUESTION 1 (MATERIAL REQUIREMENTS PLANNING) - 34
QUESTION 1 (MATERIAL REQUIREMENTS PLANNING) - 34 Marks PART A A premium product, named AYEE, is produced at Nice Things Ltd. It is constructed as follows: Product AYEE requires 1 unit of B and 2 units of B requires 3 units of D and lunit of E C requires 1 unit of D and 2 units of E. a) Draw the Bill of Material (Product Tree Structure) to show how product AYEE is constructed. You must include the levels. 13 marks Its production was planned as indicated in table I below: Table 1 5 Master Production Schedule of Finished Item AYEE Period 1 2 3 4 MPS Quantities 20 30 7 10 6 50 12 8 9 40 30 11 50 For all parts listed in the first column in table 2 below, the following information was obtained. Part Table 2 Schedule Receipts (SR's) Week Due Quantity Lot-Sizing Lead Time Rule Safety Stock Current Number On- Hand 10 C 50 Lot-for-lot 150 250 400 1 week 0 2 weeks 0 1 week 120 2 weeks 0 250 E 320 [2 marks] b) Determine the MRP explosion for all the 4 parts (B, C, D, E) c) Using the information from part (a) and tables 1 and 2 above complete the MRP worksheet at the back on page 8. (Detach it and affix it to your answer booklet). [17 marks] d) The master scheduler asks you if they can move the MPS of 20 in weeks 3 to week 2. From the data on the MRP records, what would you tell them and why? [2 marks] 12 marks] e) Is there anything of special note that is a concern? What and why

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