Solved: 1 Is Doug s Dens a business that can effectively

utilize

1. Is Doug's Dens a business that can effectively utilize MRP for planning its inventory? Why or
why not?

2. Develop a material requirements plan for the next 8 weeks using the information in Tables
7.25 and 7.26, and Figure 7.18.

In table 7.25 Master Schedule

In Table 7.26 Current Ordering Policy for Doug's Dens

Part/Subassembly Order Quantity/Reorder Point

Corner brackets ...................................... Q= 1,000; R = 500

6-foot 2x4 ............................................. Q = 4,000; R= 1,000

2-inch nails ........................................... Q= 10,000; R = 1,000

3. Discuss how Doug should go about implementing MRP. What type of training should he
provide? What kind of software and equipment? How long should he allow for the
implementation?

4. A business consultant suggested that Doug's Dens build a master schedule at the
subassembly level (i.e., for the floor, roof, and frame assemblies) rather than at the finished
product level (i.e., Fido's Favorite and Charlie's Castle). The consultant said that this is the
approach used by Dell (Doug idolizes Michael Dell as a role model). Discuss whether this
approach makes sense and explain why or why not.

ANSWER
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