The table shows a master schedule for end item Z that is produced according to the product structure tree shown below. Beginning inventories and lead times for components of Z are given in the table
The lot sizes for A, B, and C are 100 units. Complete a materials requirement plan for components A, B, and C.
Period 1 2 3 4 5 6
MPS Qty 0 0 0 250 275 275
Component A B C D E
Lead Time 1 2 2 2 1
Beginning Inv 50 75 100 15 40
What will be an ideal response?
Answer:
Week 1 2 3 4 5 6
Z 0 0 0 250 275 275
Week 1 2 3 4 5 6
E
Gross 500 550 550
Sched Rec 0 0 0
End Inv 40 40 40 0 0 0
Net Req 460 550 550
Plan Rec 460 550 550
Plan Ord 460 550 550
Week 1 2 3 4 5 6
A
Gross 920 1850 1925 825
Sched Rec
End Inv 50 50 30 80 55 30
Net Req 870 1820 1845 770
Plan Rec 900 1900 1900 800
Plan Ord 900 1900 1900 800
Week 1 2 3 4 5 6
B 920 1100 1100
Gross 920 1100 1100
Sched Rec
End Inv 75 75 55 55 55
Net Req 845 1045 1045
Plan Rec 900 1100 1100
Plan Ord 900 1100 1100
Week 1 2 3 4 5 6
C
Gross 1380 1650 1650
Sched Rec
End Inv 100 100 20 70 20
Net Req 1280 1630 1580
Plan Rec 1300 1700 1600
Plan Ord 1300 1700 1600
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a. $50,000 b. $71,000 c. $121,000 d. $21,000
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Suppose the M1 multiplier is currently 2.23 and the M2 multiplier is currently 7.95. If banks decide to increase the ratio of excess reserves they hold relative to the amount of transaction accounts they hold, how will the multipliers for M1 and M2 be affected (in qualitative, not quantitative, terms)?
What will be an ideal response?
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