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PPIC Assignment#2

The document outlines an assignment focused on Material Requirement Planning (MRP) involving calculations for planned order releases for various items based on given demands, lead times, and inventory levels. It includes specific tasks for end item A, power steering gear assembly, and production schedules for multiple items, emphasizing the need to match production with demand without excess inventory. Additionally, it discusses the Bill of Materials (BOM) for product A and the necessary actions based on inventory records over an eight-week period.

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Sachin Goswami
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57 views3 pages

PPIC Assignment#2

The document outlines an assignment focused on Material Requirement Planning (MRP) involving calculations for planned order releases for various items based on given demands, lead times, and inventory levels. It includes specific tasks for end item A, power steering gear assembly, and production schedules for multiple items, emphasizing the need to match production with demand without excess inventory. Additionally, it discusses the Bill of Materials (BOM) for product A and the necessary actions based on inventory records over an eight-week period.

Uploaded by

Sachin Goswami
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ASSIGNMENT 2

Sub: Material Requirement Planning


1. End item A has a planned lead time of two weeks. There are currently 120 units on hand
and no scheduled receipts. Compute the planned order releases using lot-for-lot and the
MPS is shown here:
Week 1 2 3 4 5 6 7 8 9 10
Demand 41 44 84 42 84 86 7 18 49 30

2. Demand for a power steering gear assembly is given by


Gear 1 2 3 4 5 6 7 8 9 10
Demand 14 12 12 13 5 90 20 20 20 20

Currently there are 50 parts on hand. The lot-sizing rule is, again, fixed order period
using two periods. Lead time is four periods.
a. Determine the planned order release schedule for the gear.

b. Suppose each gear assembly requires two pinions. Currently there are 175 pinions on
hand, the lot-sizing rule is lot-for-lot, and the lead time is one period. Determine the gross
requirements and then the planned order release schedule for pinions.

c. Suppose management decreases the demand forecast for the first period to 12. What
happens to the planned order release schedule for gears? What happens to the planned
order release schedule for pinions?

3. Production of any item (component or finished) is done only to exactly match the
demand, that is no attempt is made to save on setup costs or achieve economies of long
runs.
Consider the following numerical example with four items:
Item 1: Used only as finished product.
Item2: Finished product and two components of item 1.
Item3: Single component of item 1 and three components of item 2.
Item 4: Single component of item 2 and two components of item3.
1
Initial Production(or Finished Product requirements in
Item Inventory (at Assembly) Time for Period
time 0) Batch (Periods) 8 9 10 11
1 2 2 10 9 7 10
2 4 1 5 15 0 6
3 3 3 - - - -
4 5 1 - - - -

Develop the production schedule assuming that the company wishes to have no inventory
on hand at the end of period 11.

4. The A and B manufacturing company produce two products with the product structures
shown. It has order for 150 units of product A in period 8 and 135 units of product B in
period 7.the on hand inventory level for each item are A=5, B=2, C=135, D=300 and
E=356. When should orders be released for each item and what should be the size of each
order

A B
LT (3) LT(1)

C (2) D (1) E (1)


C (3) E (2) LT=2 LT=2 LT=2
LT=2 LT=2

D (2) E (1)
E (1) LT=2 LT=2
D (2)
LT=2 LT=2

5. The BOM for product A is given below. The MPS for product A calls for 120 units to be
2
started in weeks 2, 4, 5 and 8. Table 1 shown data from the inventory records. Develop
the MRP for the next eight weeks for each item. Would any action notice be issued? If so
identify them.

B C D E F

Lot sizing Rule FOQ=700 FOQ=700 LFL LFL LFL

Lead time 4 weeks 3 weeks 3 weeks 2 weeks 1 week

Safety stock 0 0 0 50 0

Schedule receipt 700(week1) 450(week2) 150(week2) None 1400(week1)

Beginning inventory 235 0 125 750 0

B (2) C (3) D (2)

B (1)
E (1) F (2)

E (1) F (2)

********

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