*** Problem Key – Do Not Post or Distribute ***
Chapter 12: Managing Production Across the Supply Chain
Introduction to Operations & Supply Chain Management (Bozarth & Handfield, 3rd Ed.)
DIRECTIONS To generate the key, input the same 4-digit number used to create
the original homework set. The correct answers will be generaed
automatically.
Name: *** KEY ***
4-digit #: 9000
Baxter Pharmaceuticals has developed a new drug to help students keep awake while studying for
exams. The bill-of-material (BOM) for a single full bottle of FinalZing is shown below.
FinalZing * 1 week LT
* No min order quantity
Problem 1 Below is the master production schedule for cases of FinalZing. Each case holds
20 bottles of FinalZing. Complete the projected on-hand inventory and available-to-promise
calculations for the record.
Beginning Inventory: 277
WEEK
1 2 3 4 5 6 7 8
Forecast
300 330 330 330 360 360 360 420
Orders Booked 327 290 264 257 216 392 198 126
*** KEY ***
Problem 2 Complete the MRP records shown below, using the BOM information on the first page.
Be sure to consider all lead times, minimum order sizes, beginning inventories and scheduled receipts
when developing your answers.
NOTE THE FOLLOWING:
The MRP records below expresses demand in bottles rather than cases. Otherwise, it’s the same as Problem 1.
The MRP records for Compound W and Chemicals X & Y are in ounces.
To complete this problem correctly, you must understand how much Chemical X and Y is in each ounce of Compound W.
WEEK
Full bottles 1 2 3 4 5 6 7 8
Master Schedule
25,800 0 0 0 14,400 0 15,600 0
Start Assembly 0 0 0 14,400 0 15,600 0 0
Bottles 1 2 3 4 5 6 7 8
Gross Requirements 0 0 0
14,400 0 15,600 0 0
Scheduled Receipts
9,000
Caps 1 2 3 4 5 6 7 8
5,000 5,000 5,000 5,000 40,600 40,600 25,000 25,000 25,000
Gross Requirements 0 0 0 14,400 0 15,600 0 0
Compound W (ounces) 1 2 3 4 5 6 7 8
Gross Requirements 0 0 0 86,400 0 93,600 0 0
Scheduled Receipts
Projected ending inv.
2,000 2,000 2,000 2,000 0 0 0 0 0
Chemical X 1 2 3 4 5 6 7 8
Gross Requirements 0 0 56,267 0 62,400 0 0 0
Scheduled Receipts
Projected ending inv.
00 0 0 0 0 0 0 0
Chemical Y 1 2 3 4 5 6 7 8
Gross Requirements 0 0 28,133 0 31,200 0 0 0
Scheduled Receipts