Use This Material Requirements Planning Record to Explain How Kanbans

question 48

Essay

Use this material requirements planning record to explain how kanbans and MRP can be used together. This plant operates on a 40-hour week, and uses a 10% safety factor on a container size of 20 units with a half-day turnaround time on a container. What features of each system should be used and for what purposes?
$$\begin{array} { | c | c | c | c | } \hline { \text { Week } } & 1 & 2 & 3 \\\hline \text { Gross Requirement } & 900 & 1000 & 1100 \\\hline \text { Scheduled Receipts } & 0 & 0 & 0 \\\hline \text { Projected Ending Inventory } & 0 & 0 & 0 \\\hline \text { Net Requirements } & 900 & 1000 & 1100 \\\hline \text { Planned Receipts } & 900 & 1000 & 1100 \\\hline \text { Planned Orders } & 900 & 1000 & 1100 \\\hline\end{array}$$

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Definitions:

Accounts Receivable Balances

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Cash Flow Statement

A cash flow statement is a financial document that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Non-cash Expenses

Expenses recorded on a company's income statement that do not involve an actual cash outlay, such as depreciation or amortization.

Sales Returns and Allowances

Deductions from gross sales that reflect products returned by customers and discounts provided for minor defects.