Reference no: EM13741820

- Toy Discovery, Inc. is a relatively small company in Boston. It designs, develops, and produces a variety of innovative learning toys, games, and books for early child education. The company was founded in 1980 by a preschool educator and, since the creation, continues to grow from the passion for helping children through play. Today, Toy Discovery is a leader in providing toys and games for early childhood education. It is also a foremost direct marketing company of its kind, because most of these toys and games are sold to the customers directly via the Internet.

- One of the company's product lines is dedicated to two types of toy cars: the red-and-yellow race car (20-CAR-RED) and blue retro car (20-CAR-BLUE) (see pictures of the cars below).

- The list of finished units and parts/components used in both toys is shown in table 1, and bills of materials (BOMs) for these toys are presented in Figures 1 and 2 .

- Toy Discovery assembles car toys in its Boston Manufacturing facility (M2) from several component parts: wheels, axles, and main car body. These components are outsourced from two major suppliers: Seattle Manufacturing (M1) and Dallas Manufacturing (M3) (see Table 2).

- The master demand schedule (MDS) on week 5 of is 940 units for the red-and-yellow car (20-CAR-RED), and 850 units for the blue car (20-CAR-BLUE).

- Questions.

• Briefly explain what inputs you will use for the MRP in this case.

• Use Excel to develop the MRP for the toys using the MDS on the week of June 6 and information presented.

• Provide a brief explanation of the developed MRP schedules for 20-AXLE and 20-WHEEL.

Finished Product and Component

Table 1

 

 

Component	Item Description	Characteristic	Producer/Su pplier
20-CAR-RED	Red-and-yellow race car	Finished product	Boston Manufacturing (M2)
20-CAR-BLUE	Blue retro car	Finished product	Boston Manufacturing (M2)
20-BODY-RED	Body of the red-and-yellow car	Purchased part	Seattle Manufacturing (M1)
20-BODY-BLUE	Body of the blue retro car	Purchased part	Seattle Manufacturing (M1)
20-W HL-ASSEM	Wheel assembly	Sub assembly	Boston Manufacturing (M2)
20-AXLE	Car axle	Purchased part	Dallas Manufacturing (M3)
20-W HEEL	Car wheel	Purchased part	Dallas Manufacturing (M3)

Table 2:

Item	Item Description	Characteristic	Producer/Supplier	Lead Time.days	Safety stock units	On-hand Inventory. units	Orc@ring Policy
20-CAR-RED	R ed-andlellovr race car	Finished product	Boston It nufacturing (M2)	5	30	50	Lot-for-lot
20-CAR-BLUE	Blue retro car	Finished product	Boston fit nufacturinq (M2)	5	25	35	Lot-for-lot
20-BODY-RED	Body of the red-and-yelbv:	Purchased part	Seattle Itnufacturing (MU	5	50	100	Lot-for-lot
20-BODY-BLUE	Body of the blue retro car	Purchased part	Settle rAinufacturing (M1)	5	75	120	Lot-for-lot
20-WHL-ASSEM	Wheel assently	Sub assently	Boston filinufacturing (M2)	5	130	210	Lot-for-lot
20-AXLE	Car axle	Purchased part	Dallas Manufacturing (M3)	10	100	180	Lot-for-lot
20-WHEEL	Cartwheel	Purchased part	Dallas Manufacturing (M3)	10	100	320	Lot-for-lot