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:

Financial Records

Documentation that tracks the financial activities and condition of a business or individual.

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies, reflecting the share of the profits or losses in their own financial statements.

Common Shares

Equity securities that represent ownership in a company, entitling holders to vote at shareholder meetings and receive dividends.

Investment

The allocation of resources, usually money, into assets or endeavors expected to generate income or profit over time.