1- A company is manufacturing product X. To produce one unit of product X, the company has to purchase one unit of component A & two units of component B. Show the MRP using the following information and calculate the total costs: Weeks Demand for product X Production Run Time Min Production Quantity Inventory on Hand Safety Stock Scheduled Receipts 20 Product X 1 1 week 50 units 90 units 30 2 Lead Time Min Purchase Quantity Inventory on Hand Safety Stock Scheduled Receipts 87 3 99 1 week Component A 60 units 200 units 4 20 units 100 5 2 weeks Component B 60 units 150 units 570 20 units in week 1 6

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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1- A company is manufacturing product X. To produce one unit of product X, the company has to
purchase one unit of component A & two units of component B. Show the MRP using the
following information and calculate the total costs:
Weeks
Demand for
product X
Production
Run Time
Min
Production
Quantity
Inventory
on Hand
Safety Stock
Scheduled
Receipts
20
Product X
1
1 week
50 units
90 units
30
2
Lead Time
Min
Purchase
Quantity
Inventory
on Hand
Safety
Stock
Scheduled
Receipts
87
3
99
1 week
Component
A
60 units
200 units
4
20 units
100
5
2 weeks
Component
B
60 units
150 units
570
20 units in
week 1
6
Transcribed Image Text:1- A company is manufacturing product X. To produce one unit of product X, the company has to purchase one unit of component A & two units of component B. Show the MRP using the following information and calculate the total costs: Weeks Demand for product X Production Run Time Min Production Quantity Inventory on Hand Safety Stock Scheduled Receipts 20 Product X 1 1 week 50 units 90 units 30 2 Lead Time Min Purchase Quantity Inventory on Hand Safety Stock Scheduled Receipts 87 3 99 1 week Component A 60 units 200 units 4 20 units 100 5 2 weeks Component B 60 units 150 units 570 20 units in week 1 6
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