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Question: In the following MRP planning schedule for Item J, indicate the correct net requirements, planned order receipts, and planned order releases to meet the gross requirements. Lead time is one week.

Week Number

Item J012345
Gross Requirement

75
5070
On-hand40




Net Requirement





Planned order receipt





Planned order release





Short Answer

Expert verified

Answer

Material requirements planning (MRP) is a method of determining the materials as well as equipment required to create a product.

Step by step solution

01

Explanation of week

Week 1:

The on-hand for week 0 will be the on-hand for week 1 since there is no gross requirement yet.

Week 2:

The gross requirement for week 2 is 40.

Net requirement of week 2 = gross requirement 鈥 on-hand

= 75 鈥 40

= 35

Planned order receipts = net requirement

= 35

Planned order receipts of week 2 will be equal to planned order releases of week 1 = 35

Week 3:

Since there is no gross requirement,

on-hand = 0.

Net requirement = 0

Week 4:

On-hand is 0.

Net requirement = gross requirement 鈥 on-hand

= 50 鈥 0 = 50

Planned order receipts = net requirement

= 50

Planned order receipts of week 4 = planned order releases of week 3

= 50

Week 5:

On-hand = 0.

Net requirement = gross requirement 鈥 on-hand

= 70-0 = 70

Planned order receipts = net requirement

= 70

Planned order receipts of week 5 = planned order releases of week 4

= 70

02

Tabular form

Week

Item J

0

1

2

3

4

5

Gross requirement

75

50

70

On-hand

40

40

40

0

0

Net requirement

35

50

70

Planned order receipt

35

50

70

Planned order releases

35

50

70

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Most popular questions from this chapter

Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is \(100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is \)0.65 per unit. To provide a 98 percent service probability, what must the reorder point be? Suppose the production manager is told to reduce the safety stock of this item by 100 units. If this is done, what will the new service probability be?

Sales data for two years are as follows. Data are aggregated with two months of sales in each 鈥減eriod.鈥

Months

Sales

闯补苍耻补谤测鈥揊别产谤耻补谤测

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惭补测鈥揓耻苍别

150

闯耻濒测鈥揂耻驳耻蝉迟

170

厂别辫迟别尘产别谤鈥揙肠迟辞产别谤

120

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Months

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闯补苍耻补谤测鈥揊别产谤耻补谤测

115

惭补谤肠丑鈥揂辫谤颈濒

112

惭补测鈥揓耻苍别

159

闯耻濒测鈥揂耻驳耻蝉迟

182

厂别辫迟别尘产别谤鈥揙肠迟辞产别谤

126

狈辞惫别尘产别谤鈥揇别肠别尘产别谤

106

a. Plot the data.

b. Fit a simple linear regression model to the sales data.

c. In addition to the regression model, determine multiplicative seasonal index factors. A full cycle is assumed to be a full year.

d. Using the results from parts (b) and (c), prepare a forecast for the next year.

Distinguish between dependent and independent demand in a McDonald鈥檚 restaurant, in an integrated manufacturer of personal copiers, and a pharmaceutical supply house.

Match the industry type to the expected benefits from an MRP system as High, Medium, or Low.

Is it true that, for an ERP system to be effective, it must be completely purchased from a single vendor?

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