14 May PREPARE A MATERIAL REQUIREMENTS PLAN TO MEET THE DEMAND SCHEDULE EXACTLY.
Audio products Inc., produces 2 AM/FM/CD players for cars. The radio/CD units are identical, but the mounting hardware and finish trim differ. The standard model fits intermediate and full size cars and the sports model fits small sports cars.
Audio Products handles the production in the following way. The chassis (radio/CD unit) is assembled in Mexico and has a manufacturing lead time of two weeks. The mounting hardware is purchased from a sheet steel company and has a 3 week lead time. The finish trim is purchased from a Taiwan electronics company with offices in A Los Angeles as prepackaged units consisting of knobs and various trim pieces. Trim packages have a 2 week lead time. Final assembly time may be disregarded because adding the trim package and mounting are performed by the customer.
Audio products supplies wholesalers and retailers, who place specific orders for both models up to eight weeks in advance. These order, together with enough additional units to satisfy the small number of individual sales are summarized in the following demand schedule:
WEEK
Model 1 2 3 4 5 6 7 8
Standard model for week 4 was 300 and week 8 was 400
sports model for week 5 was 200 and week 8 was 100
There are currently 50 radio/CDE units on hand but no trim packages or mounting hardware.
Prepare a material requirements plan to meet the demand schedule exactly. Specify the gross and net requirements, on hand amounts, and the planned order release and receipt periods for the radio/CD chassis, the standard trim and sports car model trim and the standard mounting hardware and the sports car mounting hardware.
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