Question Maximum Mark Mark Obtained 1 4 2 4 3 4 4 4 5 4 4 6 7 4 Total 28 A company produces an end item 'F,' which is composed of two subassemblies: 2 units of A, and 1 unit of B. A is made of 3 units of component M and 2 units of component N; and B is made of 2 units of component N and 2 units of component X. On-hand inventories for subassemblies and components are 80 units of A, 35 units of B, and 60 units of N. Scheduled receipts are 30 units of A at the beginning of week 1, and 110 units of N at the beginning of week 2. Lead times are one week for subassemblies and two weeks for all components. Final Assembly of Frequires one week. 1. Construct a product structure tree (i.e., a BOM chart). (4 marks) Answer: 2. Fill in the following table to prepare a master production schedule for end item 'F' using the lot-for-lot rule. The beginning inventory for Fis 25; the forecast and committed customer orders for end item F are provided in the table. (4 marks] 20 20 2. Fill in the following table to prepare a master production schedule for end item 'F' using the lot-for-lot rule. The beginning inventory for Fis 25; the forecast and committed customer orders for end item F are provided in the table. (4 marks Week 1 2 6 7 8 Forecast 28 20 25 Customer orders (committed) 22 20 22 10 12 Projected on-hand inventory Net Inventory before MPS MPS Receipt MPS Start Available-to-promise inventory (uncommitted) 15 8 20 5 20 0 1 4. Use your MRP schedules for the subassemblies A and B to develop material requirements plan (MRP) for the component N using the lot-for-lot ordering policy. (4 marks) 1 2 8 3 4 5 Lead time: 2 weeks, 6 7 On hand: 60 Week N Gross Requirement Scheduled Receipts Projected On Hand Net Requirements PO Receipts PO Releases 5. You are required to calculate the total inventory cost for the component N during the eight weeks. Note that, for each week, the inventory cost includes a fixed cost and a holding cost. We assume that the per order fixed cost is $50/order, and the unit holding cost is $1 per item per week. The fixed cost is incurred each time when the firm places an order. More precisely, if the firm places an order at the beginning of a week, then the firm incurs the fixed cost for this week; otherwise, the fixed cost for the week is zero. The holding cost is calculated according to the number of remaining items at the end of each week. For example, if 10 units of the component N are remaining at the end of a week, then the holding cost for this week is 10 x $1 = $10. (4 marks) 2 6. Use your MRP schedules for the subassemblies A and B to develop material requirements plan (MRP) for the component N using the ordering policy of "fixed order quantity 50". (4 marks) 1 2 8 3 4 5 Lead time: 2 weeks, 6 7 On hand: 60 Week N Gross Requirement Scheduled Receipts Projected On Hand Net Requirements PO Receipts PO Releases 7. Calculate the total inventory cost for the fixed order quantity in Question 6. The per order fixed cost is still $50/order, and the unit holding cost is still $1 per item per week. Determine if the policy of fixed order quantity is better than the policy of lot-for-lot in the 8-week period. (Hint: Compare the total inventory costs for two policies to see which one is smaller.) (4 marks]