Basile_Sarah_U4_DB_MaterialsPlanning.docx - The ABC company uses a Materials Requirements Planning(MRP system to schedule the production of Part X and

Basile_Sarah_U4_DB_MaterialsPlanning.docx - The ABC company...

This preview shows page 1 out of 1 page.

The ABC company uses a Materials Requirements Planning (MRP) system to schedule the production of Part X and its subcomponents, Y and Z. Each unit of Part X requires 2 units of component Y and 3 units of component Z. During one week, the manager determined several unpredicted factors for production outcomes: o The actual demand of Product X was twice the forecasted demand o The scrap rate from your production of Product X was 3 times as high as you anticipated o The supplier is 3 weeks late shipping subcomponent Y o The supplier only ships half of the order of subcomponent Z What do you think would happen to the production process and how could you mitigate the negative consequences? In a situation like this, I think that there would have to be a delay in the production of product X, since the subcomponents are needed in order to complete Part X. That coupled with the fact that the actual demand of product X is now twice the forecasted demand, there is no way to get product X manufactured within the original time frame. According to MUSE, an MRP system “basically nets out the
Image of page 1

You've reached the end of your free preview.

Want to read the whole page?

  • Fall '15
  • johnlofton

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors