Material Requirement planning

Read “Space Age Furniture Company” in Chapter 9 of your text. Respond to the following and include any Materials Requirement Planning (MRP) calculations:
• Develop an MRP for Space Age Furniture Company using the information in the case including the production of sub-assemblies in lot sizes of 1,000.
• The lot size of 1,000 for sub-assemblies has produced a lumpy demand for part 3079. Suggest ways for improvements over sub-assemblies in lot sizes of 1,000.
• Analyze the trade-off between overtime costs and inventory costs.
• Calculate a new MRP that improves the base MRP.
• Compare and contrast the types of production processing—job shop, batch, repetitive, or continuous—and determine which the primary mode of operation is and why.
• Describe ways that management can keep track of job status and location during production.
• Recommend any changes that might be beneficial to the company and/or add value for the customer.





Sample Solution