8. Given the bill of materials for the printer cartridge (A) shown below, a gross requirement to
build 170 units of A, on-hand inventory levels for each item as shown in the table below, and
assuming zero lead-times for all items A, B, C, D, and E, compute the net requirements for
each item.
Item On-Hand Inventory
Item On-Hand Inventory Dependent Demand Calculations
A 40 170 – 40 = 130
9. Consider the same bill of material and information in Problem #8 but assume that two of
component B are needed for each A, and that the gross requirement for A is 220 units.
Compute the net requirements for each item assuming zero lead times.
Item On-Hand Inventory Dependent Demand Calculations
A 40 220– 40 = 180
This problem illustrates the pure idea of dependent demand without the complications of
10. Each bank teller workstation is forecasted to process 300 transactions (the end-item) on
Friday. The bank is open from 9:00 a.m. to 7:00 p.m. on Friday with 90 minutes for lunch
and breaks. Three teller windows are open on Friday. A work-study analysis reveals that the
breakdown of the transaction mix is 40 percent deposits, 45 percent withdrawals, and 15
percent transfers between accounts. A different form is used for each type of transaction, so
there is one deposit slip per deposit, one withdrawal slip per withdrawal, and two transfer
slips per transfer.
The forecast is for 300 customer transactions during 8.5 hours on Friday at each of three
teller station. Deposit, withdrawal and transfer slips are “dependent” upon forecast for the
end-item (customer transactions).
a. How many transfer slips are needed on Friday?
b. How many withdrawal slips are needed on Friday?
c. Deposit slips are delivered every second day. If the on-hand balance of deposit
slips is 50 at this bank, how many deposit slips should be ordered?
d. What is the end-item and component part is this bank example.
e. What are the implications of having too many or too few deposit, withdrawal, and
transfer slips? Explain.
Too many deposit slips per branch bank and at each teller workstation could incur
unnecessary inventory carrying costs and also risk obsolescence if the bank wants to
make changes in format or information on the slips. Too few slips and some of the banks
11. The BOM for product A is shown next and data from the inventory records are shown in the
table. In the master production schedule for product A, the MPS quantity row (showing
completion dates) calls for 250 units in week 8. The lead time for production of A is two
weeks. Develop the materials requirements plan for the next eight weeks for Items B, C, and
D.
Data Category B C D
inventory
MPS Product A – Lead time = 2 weeks
Week 1 2 3 4 5 6 7 8
Item C Lot Size: FOQ = 1,000
Description Lead Time: 1 week
Use 2 Cs for each A
Week 1 234567
Planned Order Releases 1000
Item D Lot Size: LFL
Description Lead Time: 2
Item B Lot Size: P = 2 weeks
Description Lead Time: 2
Week 1 234567
12. David Christopher is an orthopedic surgeon who specializes in three types of surgery—hip,
knee, and ankle replacements. The surgery mix is 40 percent hip replacement, 50 percent
knee replacement, and 10 percent ankle replacement. Partial bills of materials for each type
of surgery are shown in the following information.
Hip Replacement Knee Replacement Ankle Replacement
Data Category B C D
inventory
a. Given that Dr. Christopher is scheduled to do 5 hip replacements, 3 knee replacements,
and one ankle replacement next week, how many surgical kits and part packages of each
type should the hospital have available next week?
No Surgical kits #203 = 5 + 3 = 8
No Surgical kits #428 = 5
No Surgical kits #108 = 1
b. How many total pints of blood are needed next week?
c. Design a “mistake-proof” system to ensure each patient gets the correct blood type.
Students might design a simple spreadsheet that calculates component part requirements
d. What are the implications of a shortage (stock out) of a surgical kit or part package
discovered several hours before the operation? What if a part package has a missing part
that is not discovered until surgery begins?
As simple as this problem is its solution is of paramount importance. Here, the type of
surgery (end-items) and the number of surgeries (order quantity in master production
13. Consider the master production schedule, bills of materials, and inventory data shown
below. Complete the MPS and MRP explosion and identify what actions, if any, you would
take given this requirements plan.
Bills of Materials
Item File
C D E F
Make sure the students use the 1 and 2 week lead times in the MPS. The only action to take
Item C, LFL, LT=3 1 2 3 4 5 6 7 8
Item D, LFL, LT = 1 1 2 3 4 5 6 7 8
Item E, FOQ = 250, LT=3 1 2 3 4 5 6 7 8
Planned Receipts
Planned Order Release
Item F, P = 2, LT=1 1 2 3 4 5 6 7 8
14. The MPS for product A calls for 100 units to be completed in week 4 and 200 units in week
7 (the lead time is 1 week). Spare part demand for Item B is 10 units per week. The bill of
materials for product A is shown on the right, and the inventory records are shown below.
Item Item
Bill of Material
A
B(1) C(2)
B(1)
a. Develop a material requirement plan for the next 7 weeks for items B and C.
MPS Product A – Lead time = 1 week
Week 1 2 3 4 5 6 7
We must know POR for Item C before we can compute GR for Item B
Item C Lot Size: LFL
Description Lead Time: 3
Use 2 Cs for each A
Week 1 234567
Item B Lot Size: FOQ = 500
Description Lead Time: 2
Spare part demand = 10
Week 1 234567
b. Will any action notices be generated? If so, what are they and explain why they must be
generated.
No actions are required since no planned order releases in action bucket (week 1). The
15. Garden Manufacturing is a small, family-owned garden tool manufacturer located in
Florence, South Carolina. The bills of materials for models A and B of a popular garden tool
are shown in Exhibit 13.19 and other additional component information is shown in Exhibit
13.20. There is considerable component part commonality between these two models, as
shown by the BOM.
The MPS calls for 100 units of Tool A to be completed in week 5 and 200 units of Tool A to
Exhibit 13.20 Component part information
Item
Data Category C D E F
Master Schedule
Item: End item A Lead Time:
Week
12345678910
Master Schedule
Item: End item B Lead Time:
Week
12345678910
Action notice: delay SR of item C to week 3
Item C Lot Size: FOQ = 400
Description Lead Time: 1 week
Week 1 2 3 4 5 6 7 8
Action notice: delay SR of item D to week 6
Item D Lot Size: L4L
Description Lead Time: 2 week
Week 1 2 3 4 5 6 7 8
Item E Lot Size: P = 4 weeks, LT = 2 weeks
Description
1 2 3 4 5 6 7 8
Item F Lot Size: LFL
Description Lead Time: 1 week
Week 1 2 3 4 5 6 7 8
Planned Order Receipts
Planned Order Releases