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Mitigate the negative consequences

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The ABC company uses a Materials Requirements Planning (MRP) system to schedule the production of Part X and its subcomponents, Y and Z. Each unit of Part X requires 2 units of component Y and 3 units of component Z. During one week, the manager determined several unpredicted factors for production outcomes:

  • The actual demand of Product X was twice the forecasted demand
  • The scrap rate from your production of Product X was 3 times as high as you anticipated
  • The supplier is 3 weeks late shipping subcomponent Y
  • The supplier only ships half of the order of subcomponent Z

What do you think would happen to the production process and how could you mitigate the negative consequences?

Reference no: EM132316658

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