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The main tool this week is Material Requirements Planning (MRP).

SCM630 – Supply Chain Planning

Week 1 – Assignment

1 The main tool this week is Material Requirements Planning (MRP).

PIMS, Inc., has been manufacturing plumbing equipment since 1999. Because of the depressed economic conditions, component parts are assembled in batch runs. At any given time, each level of production has several partially assembled components. Given the following assembly and inventory information, construct a product structure diagram for the oil leak valve, and plan the order releases necessary to assemble 400 oil leak valves for period 10.


Description of the Production Process


Production of the valve begins with the base. The base is placed and secured in a housing. Ball bearings are then installed on opposing sides of the base housing. The rear base cover is fitted on and held while the front cover is secured with U-bolts. Next, the anchor assembly is connected. Finally, two sets of brackets are screwed on, and the oil leak valve is checked before shipping.


Assume the use of the multiple of fixed lot sizes technique.


1.            Review the product structure diagram (BOM) and dataset (lead times, on order, scheduled receipts, on hand, lot size) below.


2.            Then, using Excel, complete the MRP record for the Oil Leak valve and all subcomponents. Use this template:  Week 1 – MRP Assignment.xlsx


3.            Next, consider and explain the managerial options for the next six months for short-range capacity planning for Oil Leak valve assemblies as discussed in Ch. 9.


4.            Finally, explain what you did in this assignment with regards to MRP and Capacity Planning as if you were describing the concepts to someone unfamiliar with Operations and Supply Chain Planning.


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