- Toy Discovery, Inc. is a relatively small company in Boston. It designs, develops, and produces a variety of innovative learning toys, games, and books for early child education. The company was founded in 1980 by a preschool educator and, since the creation, continues to grow from the passion for helping children through play. Today, Toy Discovery is a leader in providing toys and games for early childhood education. It is also a foremost direct marketing company of its kind, because most of these toys and games are sold to the customers directly via the Internet.
- One of the company's product lines is dedicated to two types of toy cars: the red-and-yellow race car (20-CAR-RED) and blue retro car (20-CAR-BLUE) (see pictures of the cars below).
- The list of finished units and parts/components used in both toys is shown in table 1, and bills of materials (BOMs) for these toys are presented in Figures 1 and 2 .
- Toy Discovery assembles car toys in its Boston Manufacturing facility (M2) from several component parts: wheels, axles, and main car body. These components are outsourced from two major suppliers: Seattle Manufacturing (M1) and Dallas Manufacturing (M3) (see Table 2).
- The master demand schedule (MDS) on week 5 of is 940 units for the red-and-yellow car (20-CAR-RED), and 850 units for the blue car (20-CAR-BLUE).
- Questions.
• Briefly explain what inputs you will use for the MRP in this case.
• Use Excel to develop the MRP for the toys using the MDS on the week of June 6 and information presented.
• Provide a brief explanation of the developed MRP schedules for 20-AXLE and 20-WHEEL.
Finished Product and Component
Table 1
|
Component
|
Item Description
|
Characteristic
|
Producer/Su pplier
|
|
20-CAR-RED
|
Red-and-yellow race car
|
Finished product
|
Boston Manufacturing (M2)
|
|
20-CAR-BLUE
|
Blue retro car
|
Finished product
|
Boston Manufacturing (M2)
|
|
20-BODY-RED
|
Body of the red-and-yellow car
|
Purchased part
|
Seattle Manufacturing (M1)
|
|
20-BODY-BLUE
|
Body of the blue retro car
|
Purchased part
|
Seattle Manufacturing (M1)
|
|
20-W HL-ASSEM
|
Wheel assembly
|
Sub assembly
|
Boston Manufacturing (M2)
|
|
20-AXLE
|
Car axle
|
Purchased part
|
Dallas Manufacturing (M3)
|
|
20-W HEEL
|
Car wheel
|
Purchased part
|
Dallas Manufacturing (M3)
|
Table 2:
|
Item
|
Item Description
|
Characteristic
|
Producer/Supplier
|
Lead
Time.days
|
Safety
stock units
|
On-hand
Inventory.
units
|
Orc@ring
Policy
|
|
20-CAR-RED
|
R ed-andlellovr race car
|
Finished product
|
Boston It nufacturing (M2)
|
5
|
30
|
50
|
Lot-for-lot
|
|
20-CAR-BLUE
|
Blue retro car
|
Finished product
|
Boston fit nufacturinq (M2)
|
5
|
25
|
35
|
Lot-for-lot
|
|
20-BODY-RED
|
Body of the red-and-yelbv:
|
Purchased part
|
Seattle Itnufacturing (MU
|
5
|
50
|
100
|
Lot-for-lot
|
|
20-BODY-BLUE
|
Body of the blue retro car
|
Purchased part
|
Settle rAinufacturing (M1)
|
5
|
75
|
120
|
Lot-for-lot
|
|
20-WHL-ASSEM
|
Wheel assently
|
Sub assently
|
Boston filinufacturing (M2)
|
5
|
130
|
210
|
Lot-for-lot
|
|
20-AXLE
|
Car axle
|
Purchased part
|
Dallas Manufacturing (M3)
|
10
|
100
|
180
|
Lot-for-lot
|
|
20-WHEEL
|
Cartwheel
|
Purchased part
|
Dallas Manufacturing (M3)
|
10
|
100
|
320
|
Lot-for-lot
|