Question

Audio Products, Inc., produces two AM/FM/CD players for cars. The radio/CD units are identical, but the mounting hardware and finish trim differ. The standard model fits intermediate and full-size cars, and the sports model fits small sports cars.

Audio Products handles the production in the following way. The chassis (radio/ CD unit) is assembled in Mexico and has a manufacturing lead time of two weeks. The mounting hardware is purchased from a sheet steel company and has a three-week lead time. The finish trim is purchased as prepackaged units consisting of knobs and various trim pieces from a Taiwan electronics company with offices in Los Angeles. Trim packages have a two-week lead time. Final assembly time may be disregarded because adding the trim package and mounting are performed by the customer.

2.

Audio Products supplies wholesalers and retailers, which place specific orders for both models up to eight weeks in advance. These orders, together with enough additional units to satisfy the small number of individual sales, are summarized in the following demand schedule:

There are currently 50 radio/CD units on hand but no trim packages or mounting hardware.

1. Prepare a material requirements plan to meet the demand schedule exactly. Specify the gross

   and net requirements, on-hand amounts, and the planned order release and receipt periods for the radio/CD chassis, the standard trim and sports car model trim, and the standard mounting hardware and the sports car mounting hardware. Assume all orders are L4L.

2. If the management wants to maintain a safety stock of 5 units of each product & component; & the standard trims and the sports trims are to be ordered in lots of 250 units, show the modified plan?

   1 2 3 - MODEL Standard model Sports model WEEK 4 5 300 6 7 8 400 200 100

Answer 1

Material Requirement Planning Computers the not reduirement of end tom and its component It Computes the actual Eder roovire for the lastike (on week MRP Consist of: gross redoirement, Schodu 6 receipt, net roulremont, planned order receipt and planned order nolases Following is the tree diagram for stridad Model Standar model 300 400 Following is the map of standard model and its part Given - Lead time at week standard o 1 2 3 4 15 7181 model Grossreairement schedule receipts on hand Balance bet reouirement Planned orded receipt 400 400 300 400 Planned ordo Release

Following is the MRP of chasis (identical) Given - Lead time = 2 weeks on head inventory = 50 chassis Toli23 Jul 300 Gross Requirement 400 Schedule Receipts On-hand - 50 Balance Net Requirement 400 Planned order Receipt Planned order Release Following is the MRP of trim. Given- lead time 2 weeks 400 400 Gross Roouirement 360 Scheduto Receipts On hand Balance Net Rodrinement Planned Orda Receipt 200l Planned Order Release ] 100 Following is the tree diagram for sports Model Sports Model Trim chassis

200 100 Edewing is the MRP of sports model and its Part Given- Lead time I week I sports Model 1012 13 14 15 16 17 Gross Requirement Schedule Receipts I On hand I Balance wet Rocuirement Planned &der receipt 500 100 & Planned older release! Follocoing is the MRP of chassis (identical Giver read time = 2 lead time = a coe weeks to o [ Chassis 200100 Gross Rocuirement scaeded to beceipts. - on hand Balance Net soouirement Planned Order Receipt Leo 100 (200/200 Planned order Release

Following is the MRP of Mounting Giver - lead time. 3 coleks I'Manting Gross Rocuirement Schedule Receipts on hand Balance wet Recoviremat I planned ordes Receipt LPlanned order Release! pool I 100 T Following is the MRD of Trim Given lead time = 2 weeks Toll 2 13 14 15 16 17 Gross Recurement Schedule Receipts Lan hond I Balance net Rocuirement planned older Receipt Planned Order Release I pod tool mnm LOO