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Practice Problems: Chapter 14, Material Requirements Planning

(MRP) and ERP


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 (Hih-!ualit") five drawer
filin cabinet#
The TOL and HQ use the same cabinet frame and lockin mechanism# The drawer
assemblies are different althouh both use the same drawer frame assembl"# The drawer
assemblies for the TOL cabinet use a slidin assembl" that re!uires four bearins per side
whereas the HQ slidin assembl" re!uires only two bearins per side# (These bearins are
identical for both cabinet t"pes#) $%% TOL and &%% HQ file cabinets need to be assembled
in week '$%# (o current stock e)ists#
*evelop a material structure tree for the TOL and the HQ file cabinets#
Problem 2:
*evelop a ross material re!uirements plan for the TOL and HQ cabinets in the previous
e)ample#
Problem :
*evelop a net material re!uirements plan for the TOL and HQ file cabinets in the previous
problems assumin a current on-hand finished oods inventor" of $%% TOL cabinets# The
lead times are iven below#
+aintin and final assembl" of both HQ and TOL re!uires , weeks#
-oth cabinet frames and lock assembl" re!uire $ week for manufacturin#
-oth drawer assemblies re!uire , weeks for assembl"#
-oth sliding assemblies re!uire , weeks for manufacturin#
Bearings re!uire , week to arrive from the supplier#
$
Problem 4:
.f the TOL file cabinet has a ross material re!uirements plan as shown below, no
inventor", and , weeks lead time is re!uired for assembl", what are the order release dates
and lot si/es when lot si/in is determined usin lot-for-lot0 1se a holdin cost of 2,#%%
and a setup cost of 2,%#%%, and assume no initial inventor"#
3ross 4aterial 5e!uirements +lan
6eek $ , & 7 8 9 : ; < $%
TOL 8% $%% 8% $%%
Problem !:
.f the TOL file cabinet has a ross material re!uirements plan as shown below, no
inventor", and , weeks of lead time is re!uired for assembl", what are the order release
dates and lot si/es when lot si/in is determined b" =OQ (=conomic Order Quantit")0 1se
a holdin cost of 2,#%% and a setup cost of 2,%#%%, and assume no initial inventor"#
3ross 4aterial 5e!uirements +lan
6eek $ , & 7 8 9 : ; < $%
TOL 8% $%% 8% $%%
,
Problem ":
.f the TOL file cabinet has a ross materials re!uirements plan as shown below, no
inventor", and , weeks of lead time is re!uired for assembl", what are the order release
dates and lot si/e when lot si/in is determined usin ++- (part period balancin)0 1se a
holdin cost of 2,#%% and a setup cost of 2,%,%%%, and no initial inventor"#
3ross 4aterial 5e!uirements +lan
6eek $ , & 7 8 9 : ; < $%
TOL 8% $%% 8% $%%
&
#$%&ER%
Problem 1:
Problem 2:
3ross 5e!uirements +lan
6eek $ , & 7 8 9 : ; < $%
TOL $%%
HQ &%%
7
Problem :
6eek
$ , & 7 8 9 : ; < $%
Lead
Time
TOL
5e!uired date $%% , weeks
Order release date
HQ
5e!uired date &%% , weeks
Order release date &%%
Cabinet
frame and
lock
5e!uired date &%% $ week
Order release date &%%
HQ drawer
assembl"
5e!uired date $8%% , weeks
Order release date $8%%
*rawer frame
assembl"
5e!uired date $8%% , weeks
Order release date $8%%
HQ slidin
assembl"
5e!uired date $8%% , weeks
Order release date $8%%
-earins
5e!uired date 9%%% , weeks
Order release date 9%%%

Receipts:
&%% cabinet frames and locks in week ;
$8%% HQ drawer assemblies in week ;
$8%% drawer frame assemblies in week 9
$8%% HQ slidin assemblies in week 9
9%%% bearins in week 7
8
Problem 4>
3ross 4aterial 5e!uirements +lan
6eek $ , & 7 8 9 : ; < $%
TOL 8% $%% 8% $%%
5elease dates
and lot si/es
8% $%% 8% $%%
Holdin cost ? 2%
@etup cost ? 7 A 2,% ? 2;%
Total cost ? 2;%
Problem !>
@olution usin +O4 for 6indows>
3ross 4aterial 5e!uirements +lan
6eek $ , & 7 8 9 : ; < $%
TOL 8% $%% 8% $%%
5elease dates
and lot si/es
:, <9 7; <9

Holdin cost ? 2,;%
@etup cost ? 7 A 2,% ? 2;%
Total cost ? 2&9%
9
Problem ">
@olution usin +O4 for 6indows>
3ross 4aterial 5e!uirements +lan
6eek $ , & 7 8 9 : ; < $%
TOL 8% $%% 8% $%%
5elease dates
and lot si/es
8% $%% 8% $%%
Holdin cost ? 2%
@etup cost ? 7 A 2,% ? 2;%
Total cost ? 2;%
:

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