Question

Your firm is making wooden stools for sale at outdoor and home good stores, such as World Market or Walmart. Each stool is made from one base, one seat, and two bolts. Each base is made from four legs and four screws. You have an arrangement to send 100 stools to World Market’s distribution center in week 5 and 200 in week 7. The production lead-time of the stool is 1 week. The lead-time for bolts is 2 weeks, the lead-time for each seat is 3 weeks, and the production lead-time for each base is 1 week. The lead-time for legs is 2 weeks, and the lead-time for screws is 3 weeks. You will receive 300 screws in week 4 and 200 legs in week 2 from previously planned shipments, and you currently have 40 stools and 200 screws in your inventory. Using the above information, please answer the following questions: 1. Draw a bill of materials for the stool. Please include the lead times in your drawing of the bill of materials! 2. Calculate how many of each product (stools, bases, seats, bolts, legs, and screws) in total will be needed to meet this production schedule (DO NOT include currently available inventory in this computation; this is typically done before inventory checks in real MRP). 3. Compute the full MRP for all products and subcomponents using the information you have. Then list the instructions that will come as the output (i.e. result) of that MRP run.

Answer 1

To draw a bill of materials for the stool, we need to identify the components and their lead times. The calculated quantities for each component are: 300 stools, 300 bases, 300 seats, 600 bolts, 1200 legs, and 1500 screws. The output of the MRP run would include these quantities.

Step-by-step explanation:

To draw a bill of materials for the stool, we need to identify the components and their lead times. From the given information, the bill of materials for the stool would include:

- Base (4 legs and 4 screws) with a lead time of 1 week
- Seat with a lead time of 3 weeks
- Bolts with a lead time of 2 weeks

To calculate the number of each product needed to meet the production schedule, we add up the quantities for each component:

- Stools: 100 in week 5 + 200 in week 7 = 300 stools
- Bases: 300 stools × 1 base/stool = 300 bases
- Seats: 300 stools × 1 seat/stool = 300 seats
- Bolts: 300 stools × 2 bolts/stool = 600 bolts
- Legs: 300 bases × 4 legs/base = 1200 legs
- Screws: 300 bases × 4 screws/base + 300 screws = 1500 screws

The full MRP (Material Requirements Planning) lists the quantities needed for each component based on the production schedule. The output of the MRP run would include:

- 300 stools
- 300 basesa
- 300 seats
- 600 bolts
- 1200 legs
- 1500 screws