Graded Homework

Material
Requirements Planning

The PPC
system at ABC Company is run weekly to update the master production schedule
(MPS) and MRP records. At the start of week
1, the MPS for end products X and Y is:

Week	1	2	3	4	5	6
Product X	10		25	5	10
Product Y	5	30		20		20

One
unit of component C is required to manufacture one unit of either end product X
or Y. Purchasing lead time for Component
C is two weeks, and order quantity of 40 units is used, and no (zero) safety
stock is maintained for this item.
Inventory balance for component C is 25 units at the start of week 1,
and there’s an open order (scheduled receipt) for 40 units due to be delivered
at the beginning of week 1.

Complete the MRP record for component C as it would
appearat the beginning of week 1.

Week	1	2	3	4	5	6
Gross Requirements
Scheduled Receipts
Projected Available Balance
Planned Order Receipts
Planned Order Releases

During
week 1, the following transactions occurred for component C:

• The open order for 40 units due to be
  received at the start of week 1 was received on Monday of week 1 with a
  quantity of 35 (5 units of component C were scrapped on this order).
• An inventory cycle count during week
  1 revealed that ten units of component C were missing. Thus, an inventory adjustment of -10 was
  processed.
• Five units of component C were
  actually disbursed (instead of the 15 units planned for disbursement to
  produce end products X and Y). (The
  MPS quantity of 10 in week 1 for product X was canceled as a result of a customer
  order cancellation.)
• The MPS quantities for week 7 include
  20 units for product X and 10 units for product Y.
• Because of a change in customer order
  requirements, marketing has requested that the MPS quantity of 5 units for
  product X scheduled in week 4 be moved to week 3.
• An order for 40 units was released.

Given
this information, complete the MRP
record for component C as it would appear at the beginning of week 2:

Week	2	3	4	5	6	7
Gross Requirements
Scheduled Receipts
Projected Available Balance
Planned Order Receipts
Planned Order Releases