PRODUCTION PLANNING & CONTROL, Mechanical Engineering

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PRODUCTION PLANNING & CONTROL
Assignment 2

Kid style, International, makes furniture designed for children. Its most popular items are large and small toy boxes. Demand for toy boxes has over loaded its MPS, and the company does not know how it will meet demand.

1. Given the following BOM, MPS, and Inventory Master File, generate MRP
matrices for each item and identify orders that are past due.

Product Structure for Large and Small Boxes

Large toy box

Large housing Hardware Decals

Small toy box

Small housing Hardware Decals

Master Production Schedule

Item 1 2 3 4 5 6 7 8
Large toy box 30 60 30
Small toy box 25 45 60 30

Item Master File

Item On
Hand LT Lot Size
(multiples) Scheduled Receipt
Period Quantity Unit
Value $
Large toy box 30 2 50 - - 50.00

Small toy box 25 2 1 - - 30.00
Large housing 35 2 100 - - 15.00
Small housing 45 2 75 - - 10.00
Hardware 55 2 40 2 40 5.00
Decals 50 2 1 2 50 5.00

Kid style’s Scheduling Notes and Policies

1. Monthly sales forecast should be met within plus or minus 10%.
2. Delay of a customer’s order costs 10% of the value of the order per week.
3. Customer order may be delayed a maximum of two weeks.
4. It is possible to halve lead time, but the cost of producing or ordering the item increases by 50% (e.g. workers get paid time and a half for overtime)

Pegging Report

Requirements
Item Period Quantity Type Reference
Small toy box 1 25 MS-CO B070002
3 45 MS-CO B070002
4 30 MS-CO B064444
4 30 MS-FO Z842009
6 30 MS-FO
Large toy box 2 30 MS-CO A080100
4 30 MS-CO B064444
4 30 MS-FO Z900620
6 30 MS-FO

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