Case: Toy Discovery's MRP.
- 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).
- The list of finished units and parts/components used in both toys is shown in Table 1 (slide 2), and bills of materials (BOMs) for these toys are presented in Figures 1 and 2 (slide 3).
- 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 in slide 4).
- The master demand schedule (MDS) on week 6 is 1210 units for the red-and-yellow car (20-CAR-RED), and 1020 units for the blue car (20-CAR-BLUE).
- Questions.
- Briefly explain what inputs you will use for the MRP in this case (see lecture materials on MRP, p. 7-8).
- Use Excel to develop the MRP for the toys using the MDS on the Week 6 and information presented in slides 2-4.
- Provide explanation of the developed MRP schedules for 20-AXLE, 20-WHEEL, and 20-WHL- ASSEM.