Deliver in the specified deadline

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Reference no: EM133144974

A Company produces several lines of products, but one (they call it "product X") uses unique parts to produce it and the demand is very seasonal. There are some possible variations in the design, so the company tends to use available-to-promise logic to master schedule the product. Since the components to produce it are quite expensive, the company tries very hard to minimize any inventory of the product or its components during the seasons with very low sales. Product X is just now entering the low season, and the following chart represents the forecast data and actual customer orders for the next ten weeks:

Week

1

2

3

4

5

6

7

8

9

10

Forecast

25

20

16

16

15

15

13

11

10

9

Customer Orders

27

21

16

13

11

9

7

4

3

2

Master Production Schedule

 

50

 

 

50

 

 

50

 

 

There are currently (at the start of week 1) 27 product X left in inventory. The following represents the product structure for product X:

X = A, D, B(2), C(2)

The following table gives the relevant data for components A, B, C, and D at the start of week 1:

Component

A

B

C

D

Starting Inventory

0

22

212

63

Lead Time (weeks)

2

1

2

4

Lot Size

60

100

250

100

Safety Stock

0

0

0

0

In addition, component A has a scheduled receipt of 60 units for week 2.

You are asked to:

1. Complete the master schedule for product X,

2. Create MRP grids for each of the components for the next 5 weeks.

3. Discuss the situation that if they cannot promise to deliver in the specified deadline (for example, three additional units of product X for week 4), what is the best that you can do based on the information you have?

Reference no: EM133144974

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