Scenario II: Inventory Management (I)

BOM structure tree

Electrical control box

PCB (4) Metal enclosure (2)

Switch (2) Power Cord (1) Connector (3) Terminals (2)

Scenario II: Inventory Management (III)

Week
Items
1 2 3 4 5 6 7 8
VH1-234 34 45 48 48
VH2-100 104 155 140 145

Parameters VH1-234 VH2-100 LIGHT SOCKET BOM Structure Tree

On hand 85 358 425 VH1-234 VH2-100
Q 200 400 500
Lead time 1 (the production lot size) 1 (the production lot size) 3 (purchase quantity) Socket (1) Socket (1)
Safety Stock 0 0 20

MRP Explosion
Week
Item Parameters 1 2 3 4 5 6 7 8
VH1-234 Gross requirements 34 45 48 48
On Hand= 85 Scheduled receipts
Lead Time= 1 week Projected available balance 51 51 51 6 6 158 158 110
Safety Stock= 0 Net requirements 42
Q= 200 Planned order receipts 200
Planned order releases 200
VH2-100 Gross requirements 104 155 140 145
On Hand= 358 Scheduled receipts
Lead Time= 1 week Projected available balance 254 254 254 99 99 359 359 214
Safety Stock= 0 Net requirements 41
Q= 400 Planned order receipts 400
Planned order releases 400
Socket Gross requirements 600
On Hand= 425 Scheduled receipts
Lead Time= 3 week Projected available balance 405 405 405 405 305 305 305 305
Safety Stock= 20 Net requirements 195
Q= 500 Planned order receipts 500
Planned order releases 500
Scenario III: Capacity Management
Caculation

Design capacity Planned loss of 59

hours

Avoidable loss- 58
Effective capacity
hours per week

168 hours per week 109 hours per week

Actual ouput-
51 hours per week