The MPC system at ABC Manufacturing Company is run weekly to update the master production schedule (MPS) and MRP records. At the start of week 1, the MPS for end products X and Y is:

Master Production Schedule
Week Number	1	2	3	4	5	6
Product X	10	—	25	5	10	—
Product Y	5	30	—	20	—	20

One unit of component C is required to manufacture one unit of either end product X or Y. Purchasing lead time for component C is two weeks, an order quantity of 40 units is used, and no (zero) safety stock is maintained for this item. Inventory balance for component C is 5 units at the start of week 1, and there’s an open order (scheduled receipt) for 40 units due to be delivered at the beginning of week 1.

a. Complete the MRP record for component C as it would appear at the beginning of week 1:

   

		Week
		1	2	3	4	5	6
Gross requirements
Scheduled receipts
Projected available balance
Planned order releases

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b. During week 1, the following transactions occurred for component C:

1. The open order for 40 units due to be received at the start of week 1 was received on Monday of week 1 with a quantity of 30 (10 units of component C were scrapped on this order).

2. An inventory cycle count during week 1 revealed that five units of component C were missing. Thus, an inventory adjustment of -5 was processed.

3. Ten units of component C were actually disbursed (instead of the 15 units planned for disbursement to produce end products X and Y). (The MPS quantity of 5 in week 1 for product B was canceled as a result of a customer order cancellation.)

4. The MPS quantities for week 7 include 15 units for product X and 0 units for product Y.

5. Because of a change in customer order requirements, marketing has requested that the MPS quantity of 25 units for product X scheduled in week 3 be moved to week 2.

6. An order for 40 units was released.

Given this information, complete the MRP record for component C as it would appear at the beginning of week 2:

   

		Week
		2	3	4	5	6	7
Gross requirements
Scheduled receipts
Projected available balance
Planned order releases

What action(s) are required by the inventory planner at the start of week 2 as a result of transactions occurring during week 1?

Answer rating: 100% (QA)

Answer the inventory planner should expedite the schedule receipt from ... View the full answer