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.
Ite
m
TO
L
HQ
A
B
C
D
E
F
G

Lead
time
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

Availabl
e
200
300
120
300
1500
150
1000

Gross requirement

Availabl
e

Net
requirement

Problem 4: Develop a net material requirements plan for the TOL and HQ file cabinets.
Item
A
B
C
D
E
F
G

Scheduled Receipts
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:
1
MPS for TOL
50
MPS for HQ
100

Item
Week:

2
40

Availab Lead time

le
200
2
250
1
800
100

3
1

3000
150
0

2
2
1

3
40
200

4
200

5
60

6
60
200

7
300

8
80

LT =
1

LT =
1

Gross requirement
Scheduled receipts
Projected onhand
Net Requirement
Planned receipts
Planned order releases

Item
Week:
Gross requirement
Scheduled receipts
Projected onhand
Net Requirement
Planned receipts
Planned order releases

Item
Week:

LT =
1

LT =
1

LT =
1

Gross requirement
Scheduled receipts
Projected onhand
Net Requirement
Planned receipts
Planned order releases

Item
Week:
Gross requirement
Scheduled receipts
Projected onhand
Net Requirement
Planned receipts
Planned order releases

Item
Week:
Gross requirement
Scheduled receipts
Projected onhand
Net Requirement
Planned receipts
Planned order releases

Item
Week:

LT =
1

LT =
1

Gross requirement
Scheduled receipts
Projected onhand
Net Requirement
Planned receipts
Planned order releases

Item
Week:
Gross requirement
Scheduled receipts
Projected onhand
Net Requirement
Planned receipts
Planned order releases

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
Week:

LT =
1

Gross requirement

250

200

200

250

300

300

400

Scheduled receipts

150

Projected onhand

100

Net Requirement
Planned receipts
Planned order releases

(ii) EOQ
Item
Week:

LT =
1

Gross requirement

250

200

200

250

300

300

400

Scheduled receipts

150

Projected onhand

100

Net Requirement
Planned receipts
Planned order releases

(iii) POQ
Item
Week:

LT =
1

Gross requirement

250

200

200

250

300

300

400

Scheduled receipts

150

Projected onhand

100

Net Requirement
Planned receipts
Planned order releases