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QM 3523 -- Operations Management
Department of Economics & Decision Sciences
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College of Business


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Materials Requirements Planning Exercise
Wheelbarrow Production

      Delta Equipment, Inc., (DEI) is an implement manufacturer operating out of Jonesboro, AR. Some of the items manufactured by DEI include lawn tractors, wheelbarrows, hand trucks, and concrete buggies. DEI's primary customers are several large hardware stores, a couple of high volume discount retailers, and numerous wholesalers.

      Currently, DEI is putting together a materials requirements plan for the wheelbarrows it manufactures (i.e., assembles). The plan is to be based upon a 10 week planning horizon. Over the course of this horizon, DEI has firm orders for 40 wheelbarrows to be available at the beginning of week 2, 60 each at the beginnings of weeks 5 and 7, and 50 at the beginning of week 9. These wheelbarrows are assembled in-house by DEI from three major components: handles (2 per wheelbarrow), wheel assembly packs, and barrows. DEI orders the handles from outside suppliers and assembles the wheel assembly packs in-house. Each wheel assembly pack has two subcomponents, a tire and an axle assembly, both of which are acquired from outside suppliers.

     Basic inventory data for the SKUs involved in the wheelbarrow operation are given by the following table:

SKU  On-Hand   Lot Size   Leadtime 
Wheelbarrow    0 LFL 1 week
Handle 100 300 2 weeks
 Wheel Assembly*  220 200 3 weeks
Barrow   60 100 1 week
Axle Assembly   50   50 2 weeks
Tire   50 400 1 week
*Tractors require 90 wheel assemblies in week 5

Use the above data and the worksheets available (click here to access) to determine a 10 week materials requirement plan for all SKUs associated with the wheelbarrow operation.

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