Determine the demand forecast for product


Assignment:

Product A requires one B component and two C components to make. The lead time for Product A is one week, while the lead time for component B is two weeks. The lead time for component C is one week.

The demand forecast for product A is as follows:

Table: Weekly demand forecast for A

Week

1

2

3

4

5

6

Demand  Forecast

165

190

130

230

150

200

The available inventory at the beginning of week 1 for A,B, and C is 80, 50, and 200 units respectevely. The scheduled order receipts for each item is

A: 140 units in week 1

B: 200 units in week 1 and 140 units in week 2

C: 400 units in week 1 units respectively.

Suppose the lot sizing rule for each item is as follows:

A: Lot for Lot A

B: Silver meal heuristic (A=200, h=1)

C: Part-period balancing (A=300, h 0.5)

Assume that shortages cannot be backordered and that the company wishes to maintain a safety stock of 50 parts of A and B and 100 parts of C at all times.

1. If the current time is the end of week 0, perform MRP calculations for all items until the end of week 6

2. Suppose it is now the end of week 1. The realization of demand for item A in week 1 was 200 units and the demand forecast for week 7 is 240 while all other forecasts are unchanged. Perform the MRP calculations for the three items. (Note that, for the item with L weeks lead time, the order released in week 1 will become the scheduled receipts in the week L+1.) Are there any problems with your MRP calculations? If yes, how would you handle the situations so that the production plan will be feasible?

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Operation Management: Determine the demand forecast for product
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