Question: Use Excel to complete the MRP explosion for Items B, C, and D based on the information collected from the Operations, Engineering, and Purchasing managers.
Use Excel to complete the MRP explosion for Items B, C, and D based on the information collected from the Operations, Engineering, and Purchasing managers.
Point: 2.5% of total grade or 25 points out of 1000.
Due on 4/20 midnight
Information from Operations: The MPS start quantities for product A calls for the assembly department to begin final assembly according to the following schedule:
| Finished Item A | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| MPS Start for Item A | 0 | 100 | 0 | 200 | 0 | 120 | 180 | 60 | 0 | 0 |
- Information from Engineering
Finished Goods A uses 1 unit of component B and 2 units of sub-assembly C.
One unit of sub-assembly C uses 2 units of component D.
The lead times for B, C, and D are 1, 2, and 1, respectively.
- Information from Purchasing Manager
| INVENTORY RECORD DATA | |||
| Item | |||
| Data Category | B | C | D |
| Lot-sizing rule | FOQ = 50 units | Lot-for-Lot | POQ = 3 |
| Lead time | 1 week | 2 weeks | 1 week |
| Scheduled receipts | None | 200 (week 1) | None |
| Beginning (on-hand) inventory | 20 | 0 | 425 |
Lot-sizing Rule
FOQ = 50: Fixed Order Quantity = The order must be multiple of 50
Lot-for-Lot: The order can be any amount
POQ = 3: Periodic order quantity (POQ) = The order needs to cover the gross requirements of coming 3 time periods
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