Answered: A manufacturing company produces two…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A manufacturing company produces two products X and Y. Each product X requires one A and two Bs. Each B requires one C and one D. Each product Y requires 1 C and 4Ds. Table Q5A shows data from the inventory records of components.

Table Q5A

Data category
	A	B	C	D
Lot - sizing rule	Fixed order quantity = 250	Lot for lot	Lot for lot	Fixed order quantity = 1000
Lead time	3 weeks	2 weeks	1 week	2 weeks
Beginning inventory	70	0	200	800

The MPS for products X and Y is given in Table Q5B. The on-hand inventories are as follows: X = 100, Y = 30. The only scheduled receipts are 250 units of X in period 2.The lead times are as follows: X = 2 weeks, Y = 3 weeks. The chase strategy is used for both products.

Table Q5B

Demand in period

Product	SS	1	2	3	4	5	6	7	8
X	50			300			200		250
Y	30							400

Required:

a) Draw a product structure tree for each product.

b) Develop the MRP for items X, Y, A, B, C, and Din order to meet the demand. Use the MRP format showing the following; Gross requirements, Net requirements and Planned order releases.

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