MRP and ERP Chapter 2

Chapter 2 MRP and ERP 71. Which of these products would be most likely to have dependent demand? A) refrigerators B) automobile engines C) televisions D) brownies E) automobiles Answer: B 72. Using the product-tree shown, determine the following: A) the quantity of component K that will be needed to assemble 80 units of P, assuming no on-hand inventory exists. B) the quantity of component K needed to assemble 80 units of P, given on-hand inventory of 30 A's, 50 B's and 20 C's. P A (2 C (2 B (5 C (3 K (2 K (3 D K (3 Answer: A) A leg: B leg: C leg: B) A leg: 2 x 2 x 3 = 12 per 1 P. 5 x 2 = 10 per 1 P. 3 x 3 = 9 per 1 P. Total = 31 per P or 2480 for 80 P's. 80 x 2 = 160 A's needed. 160 - 30 A's on-hand = 130 additional A's needed. 130 x 2 = 260 C's needed. 260 - 20 C's on-hand = 240 additional C's needed. 240 x 3 = 720 K's needed. B leg: 80 x 5 = 400 B's needed. 400 - 50 B's on-hand = 350 additional B's needed. 350 x 2 = 700 K's needed. C leg: 80 x 3 = 240 C's needed (on-hand used in A leg). 240 x 3 = 720 additional K's needed. Thus, 720 + 700 + 720 = 2,140 K's are needed. 73. The following is a list of components required to produce one unit of end item P: P: 2 A's, 3 B's, 3 C's A: 5 M's, 2 R's B: 1 D, 3 N's. C: 1 T, 4 N's M: 1 N Determine the number of N's that will be needed to make 60 P's in each of these cases: A) There are currently 10 P's on hand. B) On-hand inventory consists of 15 P's, 10A's, 20 B's, 10 C's, 100 N's, 300 T's, and 200 M's. Answer: The product-structure tree: P A(2) M(5) B(3) R(2) D C(3) N(3) T N(4) N A) B) A leg: 2 A's x 5 M's x 1 N = B leg: 3 B's x 3 N's = C leg: 3 C's x 4 N's = 10 N's. 9 N's. 12 N's. 31 N's.  (60 P's - 10 OH) = 1,550 N's. 45 P's needed. A leg: A: 2 x 45 - 10 = 80. M: 80 x 5 - 200 = 200. N: 200 - 100 on-hand = 100 B leg: B: 3 x 45 - 20 = 115. N: 3 x 115 = 345. C leg: C: 3 x 45 - 10 = 125. N: 4 x 125 = 500. Thus, 100 + 345 + 500 = 945 N's needed. 74. Given the following information, construct a product tree diagram and develop a material requirements plan that will yield 400 units of product P at the start of week 7. Item P A B C D Quantity for 1 of Parent Currently On- Scheduled Rcpt Parent Hand (in wk) P 1 100 0 P 1 0 0 A,B 1,2 90 100 (wk 2) B 2 50 80 (wk 2) Lead Time 1 1 1 2 2 Order Quantity lot-for-lot lot-for-lot 450 600 lot-for-lot Use the following form: Master Schedule Product P 1 2 3 4 5 6 7 8 1 Week 2 3 4 5 6 7 8 1 Week 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Gross requirements Schedule receipts Projected on hand Net requirements Planned order receipt Planned order release Gross requirements Schedule receipts Projected on hand Net requirements Planned order receipt Planned order release Week Gross requirements Schedule receipts Projected on hand Net requirements Planned order receipt Planned order release 1 Week 2 3 4 5 6 7 8 1 Week 2 3 4 5 6 7 8 Gross requirements Schedule receipts Projected on hand Net requirements Planned order receipt Planned order release Gross requirements Schedule receipts Projected on hand Net requirements Planned order receipt Planned order release Answer: Product structure: P B A D(2) C Item P A B C D 1 Planned order release in week: 2 3 4 5 300 450 600 770 C 6 400 7 8 75. Develop a material requirements plan for end item P and its components, given the tree below. Assume that all lead times are one week, and that lot-for-lot ordering is used except for item F, which is ordered in multiples of 400 units. One hundred units of P are needed at the start of each of weeks 4 and 8. Beginning inventories are: 20 P, 100 A, and 200 F. Scheduled receipts are: 800 F at the start of week 1. P B (3 ) A (2 ) D (4 ) D F (2 ) F (2 ) C (2 ) Answer: Planned order release in week: Item 1 2 3 4 5 6 7 P 80 100 A 60 200 B 240 300 C 480 600 D 480 1100 F 1200 All items have zero balances except F, which carries 140 units forward from period 5. 8 76. Given the following data, construct a material requirements plan which will result in 100 units of Parent #1 (P1) at the beginning of week 6, and 200 units of Parent #2 (P2) at the beginning of week 8: Item P1 P2 A B C Parent P1, P2 P1, P2 A, B Quantity 1,2 2,1 3,4 On-Hand 70 50 1000 On Order (due) 0 0 2000 (wk 2) Lead Time 1 1 1 3 2 Order Size lot-for-lot lot-for-lot 500 250 2000 Answer: Product structures: P2 P1 A B (2 A (2 B C (3 C (4 C (3 C (4 Planned order release in week: Item 1 2 3 4 5 P1 100 P2 A 500 B 250 250 C 2000 Quantities on hand after last order arrivals are: P1, P2 none A 70 B 150 C 100 6 7 200 8 77. The following table lists the components needed to assemble an end item, their leadtimes, and quantities on-hand. Item LT(wk.) Am't on-hand End 2 0 H 4 15 K 3 30 M 3 30 P 1 10 W 2 30 S 1 100 A) If 50 units of the end item are to be assembled, how many additional units of S will be needed? All parts can be ordered using lot-for lot ordering, except M, which must be ordered in multiples of 40 units. [Hint: You don't need to do an MRP plan.] B) An order for the end item is scheduled to be shipped at the start of week 9. When is the latest week that the initial component of this order can be started and still be ready to ship? [Hint: You don't need to do an MRP plan.] Answer: A) B) K: 50 - 30 = 20 S: 2(20) = 40 M: 2(50) - 30 = 70 (Becomes 80 due to order multiple of 40.) S: 2(80) = 160 Total S is 200 The longest sum of lead times is 8 (at the left side of the tree). Hence, the first component (W), must be ordered now. B 1 0 Refer to this product-tree: P A (2 M (3 B (3 N (4 C (4 C (4 D (5 78. If 17 Ps are needed, and no on-hand inventory exists, how many Cs will be needed? A) 8 B) 16 C) 136 D) 204 E) 272 Answer: E 79. If 17 Ps are needed, and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns, how many Cs are needed? A) 48 B) 144 C) 192 D) 212 E) 272 Answer: C 80. If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies, how many Cs are needed? A) 340 B) 350 C) 380 D) 400 E) 590 Answer: B Use the following to answer questions 81-83: Bunny Helpers, Inc. has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week six. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand: Deluxe Easter Basket Parts List Deluxe Easter Basket Dark Chocolate Truffles (2) Carved Choolate Eggs (4) LEAD TIME 1 week 2 weeks 1 week ON HAND 10 30 50 Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally one bottle of Alka-Selzer is included for those who overindulge. 81. What is the net requirement for Dark Chocolate Truffles to fill this order? A) 100 B) 140 C) 150 D) 180 E) 200 Answer: C 82. When should an order for Carved Chocolate Eggs be released? A) at the start of week 2 B) at the start of week 3 C) at the start of week 4 D) at the start of week 5 E) at the start of week 6 Answer: A 83. How many Dark Chocolate Eggs should be ordered? A) 310 B) 450 C) 500 D) 550 E) 600 Answer: A 84. What is the economic part-period (EPP) for ordering this item? A) 2 B) 50 C) 100 D) 150 E) 200 Answer: E 85. What is the part-period method lot size for the order for the first period? A) 120 B) 200 C) 280 D) 350 E) 450 Answer: C 86. For which period will the second order be submitted using the part period lot sizing method? A) period 2 B) period 3 C) period 4 D) period 5 E) period 6 Answer: C 87. What is the lot size for the second order using the part-period method? A) 80 B) 150 C) 170 D) 250 E) 230 Answer: E 88. If the firm is using a fixed period lot size of two periods, what is the order size for the first order? A) 120 B) 200 C) 280 D) 160 E) 150 Answer: B