Class Problems: Chapter 14, Material Requirements Planning
Problem 1:
The Hunicut and Hallock Corporation makes two versions of the same basic file cabinet,
the TOL (Top-of-the-line) five drawer file cabinet and the HQ (High-quality) five drawer
filing cabinet.
The TOL and HQ use one unit each of the same cabinet frame and locking mechanism
(A). The drawer assemblies are different (5 units of B for each TOL and 5 units of F for
each HQ). Both drawer assemblies B and F use one unit of the same drawer frame
assembly (C) for each drawer assembly. Further, the drawer assembly B for the TOL
cabinet uses one sliding assembly (D) that requires eight bearings (E), and the drawer
assembly F for the HQ cabinet uses one sliding assembly (G) and each G requires only
four of the same bearings (E).
Develop a material structure tree for the TOL and the HQ file cabinets.
Problem 2: Determine the overall lead time for the two end products TOL and HQ.
Item
Lead time
TOL
HQ
A
B
C
D
E
F
G
1
1
2
1
3
2
2
1
1
Problem 3: Suppose that the production of 100 TOL and 300 HQ file cabinets is
planned. Further suppose that the following inventories are available. Determine the
low-level code and calculate the net requirements for all the component items.
Item
A
B
C
D
E
F
G
Item
Available
200
300
120
300
1500
150
1000
Gross requirement
Available
Net requirement
Problem 4: Develop a net material requirements plan for the TOL and HQ file cabinets.
Available Lead time
Item
Scheduled Receipts
A
B
C
D
E
F
G
Week #1 = 200
None
Week #1 =600, Week #2 = 600
Week #1 = 200
Week #1 = 3000, Week #2 =3000
Week #1 =800
Week #1 = 500
Master production schedule
Week:
MPS for TOL
MPS for HQ
Item
Week:
1
50
100
2
40
200
250
800
100
3000
150
0
2
1
3
1
2
2
1
3
40
200
4
200
2
3
4
2
3
4
5
60
6
60
200
7
8
80
300
5
6
7
8
5
6
7
8
LT =
1
Gross requirement
Scheduled receipts
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
Item
Week:
Gross requirement
Scheduled receipts
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
LT =
1
Item
Week:
LT =
1
2
3
4
5
6
7
8
2
3
4
5
6
7
8
2
3
4
5
6
7
8
Gross requirement
Scheduled receipts
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
Item
Week:
LT =
1
Gross requirement
Scheduled receipts
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
Item
Week:
Gross requirement
Scheduled receipts
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
LT =
1
Item
Week:
LT =
1
2
3
4
5
6
7
8
2
3
4
5
6
7
8
Gross requirement
Scheduled receipts
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
Item
Week:
Gross requirement
Scheduled receipts
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
LT =
1
Problem 5: For item B, the setup cost is $250 per setup and the inventory carrying cost is
$0.90 per unit per week. Determine the lot sizes and total cost for this item under (i) Lotfor-Lot, (ii) EOQ, and (iii) POQ methods. Let lead time be 1 week.
(i) Lot-for-lot
Item
LT =
Week:
1
2
3
4
5
6
7
8
Gross requirement
250
200
200
250
300
300
0
400
Scheduled receipts
150
0
0
0
0
0
0
0
Projected on-hand
Net Requirement
Planned receipts
Planned order releases
100
(ii) EOQ
Item
LT =
Week:
1
2
3
4
5
6
7
8
Gross requirement
250
200
200
250
300
300
0
400
Scheduled receipts
150
0
0
0
0
0
0
0
Projected on-hand
100
Net Requirement
Planned receipts
Planned order releases
(iii) POQ
Item
LT =
Week:
1
2
3
4
5
6
7
8
Gross requirement
250
200
200
250
300
300
0
400
Scheduled receipts
150
0
0
0
0
0
0
0
Projected on-hand
100
Net Requirement
Planned receipts
Planned order releases