OPERATIONS MANAGEMENT

Time: One Hour

TUTORIAL NUMBER – 08

1. The BOM for a rocking chair is shown in the following figure. The inventory status
record for Seat Subassembly needs to be prepared using Fixed Order Quantity Rule.
Whenever this subassembly is ordered, the lot size quantity has to be 230. The lead time
involved is 2 weeks. Complete the inventory status record for item C using the given
information in Figure 1 and Figure 2.

Figure 1

Figure 2

2. For an item Y which is used in finished product B, the following data has been given. The
planning horizon is of 10 weeks and the time buckets are in weeks. The gross
 requirements for item Y are 500, 550, 200, 275, and 350 in week 3, 4, 5, 8, and 10
respectively. The beginning inventory is 100 units. There are two scheduled receipts of
200 units each in week 1 and 2 each. The lead time of the item is 1 week and Periodic
Order Quantity (POQ) lot sizing rule is to be used. Considering P = 3, compute the
inventory status record for the given dependent demand item.
3. For the data given in Problem 1, the three lot sizing rules have to be compared for the
inventory remnants they produce. The following rules have to be compared:
a. FOQ Rule with fixed quantity = 230
b. POQ Rule with P = 2
c. L4L Rule

Which among the following three rules is creating the highest inventory remnants and
why? What are the benefits and also limitations of such remnants?

4. The completed inventory status record for subassembly C using FOQ = 230 and 2 weeks
lead time is shown in Figure 3.

Figure 3

Perform MRP explosion to prepare the record for items H, I, and J. The following data has
been given for each of these items.

a. Item H: FOQ = 300; Lead Time = 1 Week; Beginning Inventory = 40

b. Item I: L4L; Lead Time = 1Week; Beginning Inventory = 0
c. Item J: FOQ = 1500; Lead Time = 1 Week; Beginning Inventory = 200