Question 2: (20 marks)

Suppose you are offered an internship position after your satisfactory interview performance (in Question 1). As an intern, you are asked to study about inventory problems and to prepare a material requirement plan (MRP) for a new product T which structure and other relevant data are given below:

Component/Subassembly	Number Required	Lead Time
Subassembly A	3	2 weeks
Component B	4	2 weeks
Subassembly A	Number Required	Lead Time
Component B	2	2 weeks
Component C	5	1 week

Subassembly A and Components B and C are purchased from external suppliers.

Both Components B and C are also sold to customers. A particular customer of Component B requires 140 units in week 2 and 50 units in week 5 while another customer of Component C needs 300 in week 3 and 200 in week 6. The beginning inventory of Subassembly A is 200 units, the beginning inventories of Components B and C are 600 and 100 units, respectively. There is no inventory of product T.

The Master Production Schedule (MPS) data of product T as well as the lot size, lead time, safety stock requirement and minimum order quantity for Subassembly A, Components B and C are shown in the following worksheets.

Component C

Lot size:

200 units

Minimum order quantity:

400 units

Lead time:

1 week

Immediate Parent(s):

Safety stock:

0 units

Week number

1

2

3

4

5

6

7

8

Gross Requirements

Scheduled Receipts

Projected on hand

100

Net Requirements

Planned order receipts

Planned order releases

1. Determine the planned order releases for Component C. Present your answer with the following table in your Answer File and the whole worksheet showing steps.

Week number			1	2	3	4	5	6	7	8
Planned order releases

(4 marks)

Answer Here: