Question

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 3 weeks. The mounting hardware is purchased from a sheet steel company and has a three-week lead time. The finish trim is purchased from a Taiwan electronics company with offices in Los Angeles as prepackaged units consisting of knobs and various trim peices. 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.

Audio Products supplies wholesalers and retailers, who 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.

Week	1	2	3	4	5	6	7	8
Standard Model				305				420
Sports Model					218			120

There are currently 55 radio/CD units on hand but no trim packages or mounting hardware.

Prepare a material requirements plant to meet the demand scheduled 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 standard mounting hardware and the sports car mounting hardware.

Answer 1

Below is the require MRP schedule -

		On Hand	1	2	3	4	5	6	7	8
	Standard Model		0	0	0	305	0	0	0	420
	Sport Model		0	0	0	0	218	0	0	120
Radio/CD Q = L4L L = 3	Gross Requirement		0	0	0	305	218	0	0	540
	Scheduled Receipts		0	0	0	0	0	0	0	0
	Projected on Hand	55	55	55	55	0	0	0	0	0
	Net Requirements		0	0	0	250	218	0	0	540
	Planned Order Receipts		0	0	0	250	218	0	0	540
	Planned Order Releases		250	218	0	0	540	0	0	0
Standard Trim Q = L4L L = 2	Gross Requirement		0	0	0	305	0	0	0	420
	Scheduled Receipts		0	0	0	0	0	0	0	0
	Projected on Hand	0	0	0	0	0	0	0	0	0
	Net Requirements		0	0	0	305	0	0	0	420
	Planned Order Receipts		0	0	0	305	0	0	0	420
	Planned Order Releases		0	305	0	0	0	420	0	0
Standard HW Q = L4L L = 3	Gross Requirement		0	0	0	305	0	0	0	420
	Scheduled Receipts		0	0	0	0	0	0	0	0
	Projected on Hand	0	0	0	0	0	0	0	0	0
	Net Requirements		0	0	0	305	0	0	0	420
	Planned Order Receipts		0	0	0	305	0	0	0	420
	Planned Order Releases		305	0	0	0	420	0	0	0
Sport Trim Q = L4L L = 2	Gross Requirement		0	0	0	0	218	0	0	120
	Scheduled Receipts		0	0	0	0	0	0	0	0
	Projected on Hand	0	0	0	0	0	0	0	0	0
	Net Requirements		0	0	0	0	218	0	0	120
	Planned Order Receipts		0	0	0	0	218	0	0	120
	Planned Order Releases		0	0	218	0	0	120	0	0
Sport HW Q = L4L L = 3	Gross Requirement		0	0	0	0	218	0	0	120
	Scheduled Receipts		0	0	0	0	0	0	0	0
	Projected on Hand	0	0	0	0	0	0	0	0	0
	Net Requirements		0	0	0	0	218	0	0	120
	Planned Order Receipts		0	0	0	0	218	0	0	120
	Planned Order Releases		0	218	0	0	120	0	0	0