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Material Requirements Planning

1. Elsbeth Home Furnishing Ltd. assembles dining room tables using bought-in parts of four legs and a top. These have lead times of two and three weeks respectively, and assembly takes a week. The company receives orders for 40 tables to be delivered in week 5 of a production period and 80 tables in week 7. There are current stocks of four complete tables, 80 legs and 44 tops. When should the company order parts?

2. A master schedule shows 100 units of a product, AA, to be made in week 11 of a cycle, 220 units in week 14 and 150 units in week 16. There are currently 50 units of the product in stock. Each unit of the product takes a week to assemble from 3 units of part BB and 4 units of part CC. Each unit of part BB is made in one week from 2 units of material DD and 5 units of material EE. Part CC is assembled in 2 weeks from 3 units of component FF. Lead times for DD, EE and FF are 3, 2 and 1 weeks respectively. Current stocks are 200 units of BB, 250 of CC, 120 of DD, 400 of EE and 200 of FF. The company keeps minimum stocks of 20 units of AA, 40 units of DD, 100 of EE and 100 of FF. The minimum order size for EE is 500 units, while FF can only be ordered in discrete batches of 100 units. An order placed with a sub-contractor for 200 units of CC is expected to arrive in period 8. Design a timetable of activities for the company.

3. It costs C–– 1.50 to store a unit of an item for one month. The total cost of placing an order for the item, including delivery, is C–– 950. An MRP analysis has found the following demands for the item:

Month Demand

1 50

2 25

3 30

4 30

5 50

6 60

7 40

8 30

9 20

10 30

11 40

12 50

13 70

Hi The 3 practices exercise a need the result in excel with formula and solution

Skills: Accounting, Materials Engineering

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