Material Requirements Planning

Audio products inc produces two 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 three week lead time. The finish trim is purchased
from a Taiwan electronics company with offices in los angeles as
prepackaged units consisting of knobs and various trim pieces. Trim
packages have a two week lead time. Final assembly time may be
disregarded because adding the trim package and mounting are performed
by the consumer.

Audio products supplies wholesalers and retailers, who place specific
orders for both models up to eight weeks in advance. These orders,
together with enough additional units to satisfy the small number of
individual tastes, are summarized in the following demand schedule.

Week

Model 1 2 3 4 5 6 7 8

Standard Model



300



400

Sports Model



200

100













There are 50 Radio/CD 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 care model trim, and the standard mounting
hardware and the sports car mounting hardware.