Question

Toy Discovery, Inc. is a relatively small company in Boston. It designs, develops, and produces a variety of innovative learning toys, games, and books for early child education. The company was founded in 1980 by a preschool educator and, since the creation, continues to grow from the passion for helping children through play. Today, Toy Discovery is a leader in providing toys and games for early childhood education. It is also a foremost direct marketing company of its kind, because most of these toys and games are sold to the customers directly via the Internet.  

One of the company’s product lines is dedicated to two types of toy cars: the red-and-yellow race car (20-CAR-RED) and blue retro car  (20-CAR-BLUE).

The list of finished units and parts/components used in  both toys is shown in Table 1 (slide 2), and bills of materials (BOMs) for these toys are presented in Figures 1 and 2 (slide 3).

Toy Discovery assembles car toys in its Boston Manufacturing facility (M2) from several component parts: wheels, axles, and main car body.  These components are outsourced from two major suppliers: Seattle Manufacturing (M1) and Dallas Manufacturing (M3) (see  Table 2 in slide 4).

The master demand schedule (MDS) on week 6 is 1210 units for the red-and-yellow car (20-CAR-RED), and 1020 units for the blue car (20-CAR-BLUE).

QUESTIONS (THIS IS ALL OF THE INFORMATION PROVIDED FOR THESE QUESTIONS)

·Use Excel to develop the MRP for the toys using the MDS on the Week 6 and information presented in slides 2-4.

·Provide explanation of the developed MRP schedules for 20-AXLE,  20-WHEEL, and 20-WHL-ASSEM.

  

Finished Product and Components Table 1 Producer/Supplier Component 20-CAR-RED 20-CAR-BLUE Item Description Characteristic Red-and-yellow race car Blue retro car Finished productBoston Manufacturing (M2 Finished product Boston Manufacturing (M2) 20-BODY-RED Body of the red-and-yellow car Purchased partSeattle Manufacturing (M1 20-BODY-BLUE Body of the blue retro car Purchased part Seattle Manufacturing (M1) 20-WHL-ASSEM Wheel assembly 20-AXLE 20-WHEEL Sub assembly Boston Manfacturing (M2) Car axle Car wheel Purchased partDallas Manufacturing (M3) Purchased part Dallas Manufacturing (M3) Bills of Materials Figure I Figure 2 20-CAR-RED 20-CAR-BLUE 20-WHL-ASSEM 20-BODY-RED 20-WHL-ASSEM 2 required 20-BODY-BLUE 1 required 2 required 1 required 2a-ANLE (24-WHEEL. 20-AXLE20-WHEEL 1 required 20-WHEEL 2 required 1 required 2 required Inventory Items Table 2 On-hand Lead Safety Inventory, Ordering Pol Lot-for-lot Lot-for-lot Lot-for-lo Lot-for-lot Lot-for-lot Lot-for-lot Lot-for-lo Item Item Description Characteristic Producer/Supplier Time 20-CAR-RED Red-and-yellow race car Finished product Boston Manufacturin 20-CAR-BLUE Blue retro car 20-BODY-RED Body of the red-and-yellow Purchased part Seattle Manufacturing (M1 20-BODY-BLUE Body of the blue retro car Purchased part Seattle Manufacturing (M1 20-WHL-ASSEM Wheel assembl 20-AXLE 20-WHEEL stock, units 30 25 50 75 130 100 100 units 50 35 100 120 210 180 320 Finished product Boston Manufacturin Car axle Car wheel Sub assembl Purchased part Purchased part Boston Manufacturin Dallas Manufacturing (M3 Dallas Manufacturing (M3 10 10

Answer 1

MRP explosion for all parts
Item	20-CAR-RED	Week		1	2	3	4	5	6
B.I.	50	Gross requirement		0	0	0	0	0	1210
SS	30	Scheduled receipts		0	0	0	0	0	0
LT (weeks)	1	Projected On-hand	50	50	50	50	50	50	30
Policy	L4L	Net requirements		0	0	0	0	0	1190
		Planned order receipts		0	0	0	0	0	1190
		Planned order releases		0	0	0	0	1190	0
Item	20-CAR-BLUE	Week		1	2	3	4	5	6
B.I.	35	Gross requirement		0	0	0	0	0	1020
SS	25	Scheduled receipts		0	0	0	0	0	0
LT (weeks)	1	Projected On-hand	35	35	35	35	35	35	25
Policy	L4L	Net requirements		0	0	0	0	0	1010
		Planned order receipts		0	0	0	0	0	1010
		Planned order releases		0	0	0	0	1010	0
Item	20-BODY-RED	Week		1	2	3	4	5	6
B.I.	100	Gross requirement		0	0	0	0	1190	0
SS	50	Scheduled receipts		0	0	0	0	0	0
LT (weeks)	1	Projected On-hand	100	100	100	100	100	50	50
Policy	L4L	Net requirements		0	0	0	0	1140	0
		Planned order receipts		0	0	0	0	1140	0
		Planned order releases		0	0	0	1140	0	0
Item	20-BODY-BLUE	Week		1	2	3	4	5	6
B.I.	120	Gross requirement		0	0	0	0	1010	0
SS	75	Scheduled receipts		0	0	0	0	0	0
LT (weeks)	1	Projected On-hand	120	120	120	120	120	75	75
Policy	L4L	Net requirements		0	0	0	0	965	0
		Planned order receipts		0	0	0	0	965	0
		Planned order releases		0	0	0	965	0	0
Item	20-WH-ASSEM	Week		1	2	3	4	5	6
B.I.	210	Gross requirement		0	0	0	0	4400	0
SS	130	Scheduled receipts		0	0	0	0	0	0
LT (weeks)	1	Projected On-hand	210	210	210	210	210	130	130
Policy	L4L	Net requirements		0	0	0	0	4320	0
		Planned order receipts		0	0	0	0	4320	0
		Planned order releases		0	0	0	4320	0	0
Item	20-AXLE	Week		1	2	3	4	5	6
B.I.	180	Gross requirement		0	0	0	4320	0	0
SS	100	Scheduled receipts		0	0	0	0	0	0
LT (weeks)	2	Projected On-hand	180	180	180	180	100	100	100
Policy	L4L	Net requirements		0	0	0	4240	0	0
		Planned order receipts		0	0	0	4240	0	0
		Planned order releases		0	4240	0	0	0	0
Item	20-WHEEL	Week		1	2	3	4	5	6
B.I.	320	Gross requirement		0	0	0	8640	0	0
SS	100	Scheduled receipts		0	0	0	0	0	0
LT (weeks)	2	Projected On-hand	320	320	320	320	100	100	100
Policy	L4L	Net requirements		0	0	0	8420	0	0
		Planned order receipts		0	0	0	8420	0	0
		Planned order releases		0	8420	0	0	0	0

MRP explosion for all parts Item 20-CAR-RED Gross requirement Scheduled receipts Projected On-hand-83 -MAXIO,D5+E4 +ET-E3) Net requirements Planned order receipts E6 Planned order releases F7 SS 30 -MAX(0 ES+F4+F7-F3 MAX(0$84+63-F5-G4) =MAX(0$84+H3.GSH4) -MAX(0.$84 +13-H5-14)--MAX(0.SB4+)3.5j4 Item 20-CAR-BLUE Gross requirement Scheduled receipts Projected On-hand =B11 =MAx(0,D13+E12+E 15-E11) Net requirements Planned order receipts E14 Planned order releases F15 13 LT (weeks) 1 =MAX (0,E13+F12+F15-F11) =MAX(0,F13+G 12 +G 15-G11) =MAx(0,G 13+H12+H15-H11) =MAX(0,H13+112+/15-111) =MAX(0,113+]1 j15-J11) 11-113-1 L4L -MAX(0,5B12+E11-D13-E12)-MAX(0.5B12+F11-E13-F12)-MAX (0.5B12+611-F13-G12-MAX(0.5B12+H11-G 13-H12)-MAX(0,5B12+111-H13-112)-MAX(0.5B12 ) -G14 -H15 =H14 Item 20-BODY-RED B.I. 100 Gross requirement Scheduled receipts 21 LT (weeks O F21+620+623G19 G21+H20 23.Hİ)-MAX Dkz1+ 20 lected On-hand-819 _MAX (0 D21 +E20+E23. E19 Net requirements Planned order receiptsE22 Planned order releases-F23 MA E21+F20 F23F19 -MA -MAX 19 -M X 0 21 -MAx(0,$820+Elg. D2 1-E20)-MAX (0,SB20+F19-E21-F20)-MAX (0,$820+G 19-F21-G20)-MAX(0r$820+H19-G21-H20)=MAx(0,$B20H19-H21-120)-MAX(0-$B20+]19-121-J20) =H22 Item 20-BODY-BLUE B.I. 120 SS 75 Scheduled receipts Projected On-hand-B27-MAX(0,D29+E28+E31 E27) -MAX(0,E29+F28+F31-F27) MAX(O,F29+G28+G31-G27) -MAX(0,G29+H28+H31-H27)MAX(0,H29+128+131-127) MAX(0,129 +J28+131-J27) Net requirements Planned order receipts E30 Planned order releases =F31 =MAx(0.$B28-E27-D29-E28) =MA G31 10.sB2B+F27-E29-F28) =MAX (0.5B28+627-F29-G28) =MAx(0,$828+H27-G29-H28) =MAx(0.$B28+/27-H29-128) =MAX(0,$828+/27-129/28) 0.B28+G27-F29-G28) MAXIO.SB28+H27-G29-H28)MAXIO,5B28+127-H29-128) MAXIO.SB2 H30 130 20-WH-ASSEM 2"(B+E16) MAX(0,$B36+E35-D37-E36)-MAXI0,s836+F35-E37-F36)-MAXI0,$B36+G35-F37-G36) -MAXIO,$B36+H35-G37-H36)-MAX( B.I. 210 Gross requirement led receipts 37 LT (weeks) 1 Projected On-hand =B35=MAx(0,D37+E36+E 39-E35) Net requirements Planned order receipts E38 Planned order releases F39 =MAX10.E37+F36+F39-F35) =MAXIO,F37+G36+G39-G35) =MAX(0,G37+H36+H39-H35) =MAX(0,H37+136+/39-35) =MAX(0.137 0,$836 +135. H37136)-MAX(0.5836リ35-137136) H38 -138 G39 H39

41 42 43 Item 20-AXLE -40 Gross requirement Projected On-hand 43 Planned order receipts SS 100 MAX 0 D45+E44f47-E43) MAX OE45+F44 F47-F43) MA 0 F45+644+647 43) MA ( G45 +H44th 47 H43 -MAX(0 45+144 +47 43 MAX 45 44サ47 46 Policy -MAX(0,S844+E43-D45 E44)-MAX(O,S844+F43 E45-F44) MAX 0,SB44+G43-F45-G44)-MAXIO,$B44+H43-G45-H44)-MAX(0$B44+143-H45-44)-MAX(O,$844+143-145-144) 47 49 51 53 LT (weeks) 2 E46 F46 G46 -147 Planned order releas -G47 -H47 -147 -L47 Item 20-WHEEL ross requirement Scheduled receipts Projected On-hand-B51 2E _MAX10.D53tE52+E55-E51) -MAX (0,SB 52+E5 1-D53-E52) _MAX(0,SB52 + F51-E5 3-F52) =MAX 10,$B52+G 51-F53-G52) =MAX(0-$B52+H51-G53-H52) =MAx(0,$B52+/51-H53-152) =MAx(0,$B52+]51-53 _MAX(0E53 +F52+F55-F51) _MAX(0.F53tG52+G55-G51)_MAX(0.G53 + H52+H55-HS1)-MAX(0,H53 +152 +155-151) _MAX(0,153 +J52+」55-151) 54 Policy requirements Planned order receipts-E54 Planned order releases G55 G54 -155 H54 -L55