Question

Take Test: Unit VII Assessment

Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Materials requirement planning takes information from the master schedule that is a detailed plan for future production. Because of the needs of the firm, the master schedule must be stated in terms of complete assemblies. Do you agree or disagree with this statement? Defend your position.

If you are in the business of making roller skates, would the wheels needed be dependent or independent on the production levels? Would the demand for roller skates be dependent or independent?

Discuss the importance of the master production schedule in an MRP system.

Assume you are building custom motorcycles. All custom bikes use some standard parts. Part number HD-60 is stocked in your inventory of component parts. Each year you use about 2,000 HD-60 components at a cost of $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for HD-60 components, it costs $10. (a) How many items of HD-60 should be ordered at a time? (b) What are the annual costs of ordering HD-60 components? (c) What is the annual cost of storing HD-60 components?

Product A is an end item and is made from two units of B and four of C. B is made of three units of D and two of E. C is made of two units of F and two of E. A has a lead-time of one week. B, C, and E have lead times of two weeks, and D and F have lead times of three weeks. Show the bill of materials (product tree structure).

You have a business in which you sell very inexpensive items and very expensive items. Would you use a fixed-time period or a fixed-quantity period model to order the expensive items? Explain your decision.

Holding cost is handled differently in MRP and EOQ models. Describe those differences.

In cases where demand is difficult to predict, which probability models would you use so that the risk associated with stock out is managed? Briefly describe how each model would be used.

The question of flexibility within a master production schedule depends on several factors. Unless some operating rules are established and adhered to, the system could become chaotic. What techniques does management use to maintain a reasonably controlled flow through the production system?

Grade: University | Subject: Business
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Unit-7

Materials requirement planning

Yes, I agree with the given statement because the material requirement planning was a planning of computer based inventory control and production system. The MRP was concerned with both the scheduling of production and the system of inventory control. It was a system of material control and that will be attempting to keep the adequate levels of inventory for assuring the required materials that were available when it was needed. The term Material Requirements Planning can be abbreviated as MRP. The master scheduling will be done by collecting more information and with good planning. The master schedule will contain every information needed for a company including which were the materials needed for the company , what were the information needed for the company, when the materials should…

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