Operations Management: An Integrated Approach, 5th Edition

CASE: Newmarket International Manufacturing Company (B)

The Newmarket International Manufacturing Company (NIMCO) was started by Marcia Blakely just two years after she finished graduate school. Her knowledge of mass customization has been the driving force behind NIMCO. The company produces three major custom products. Volume on the products is high even though each item is customized specifically for the customer. The products are processed through up to four different work centers. Even though each item is unique, the processing time at each work center is constant due to the sophisticated equipment used.

Developing a Material Requirements Plan

Joe Barnes, the production manager, reviewed your rough-cut capacity planning report and developed a new MPS that better uses capacity at each work center. Joe has given you an authorized MPS and has asked you to generate the schedule of material requirements. The authorized master production schedule is shown in Table 14-12.

TABLE 14-12 Authorized MPS

• (a) Generate the material requirements. You need a BOM for each of the three products (A, B, and C), beginning inventory levels, and scheduled receipts. The BOMs are shown in Figure 14-8. All items use lot-for-lot as the lot size rule. No beginning inventories exist. Lead time is two weeks for all items except items D and F, which have a lead time of three weeks. All other information is ...