Evaluate 9.2 Problem 23

Figure 16.42 shows the BOMs for two products, A and B. Table 16.5 shows the MPS quantity start date for each one. Table 16.6 contains data from inventory records for items C, D, and E. There are no safety stock requirements for any of the items.
a. Determine the material requirements plan for items C, D, and E for the next 8 weeks.
b. What specific managerial actions are required in week 1?
c. Suppose that a very important customer places an emergency order for a quantity of product A. In order to satisfy this order, a new MPS of 200 units of product A is now required in week 5. Determine the changes to the material requirements plan if this order is accepted and note any problems that you detect.

figure 16.42

B

A

D (2)

E (1)

D (1)

E (2)

E (1)
D (1)
E (1)

C (2)

E (2)

2

>Sheet

1

.

ate

s

Date

1 2

5 6

ategory

C D

Table 1

6

5

MPS Quantity Start

D

Product

3

4

7

8

A

125

95

150

130

B

80

70

Table 16.6

Inventory Record Data

Data

C

E

Lot-sizing rule

L4L

POQ (P = 3)

FOQ = 800

Lead time

3 weeks

2 weeks

1 week

Scheduled receipts

200 (week 2)

None

800 (week 1)

Beginning Inventory

85

625

350

Sheet2

Sheet3