Purchase Solution

Preparing BOM and computing gross and net requirements

Not what you're looking for?

Ask Custom Question

14.8 As the production planner for Scott Sampson Products, Inc., you have been given a bill of material for a bracket that is made up of a base, two springs, and four clamps. The base is assembled from one clamp and two housings. Each clamp has one handle and one casting. Each housing has two bearings and one shaft. There is no inventory on hand.
a) Design a product structure nothing the quantities for each item and show the low-level coding.
b) Determine the gross quantities needed of each item if you are to assemble 50 brackets.
c) Complete the net quantities needed if there are 25 of the base and 100 of the clamp in stock.

Purchase this Solution
Solution Summary

The solution provides step by step guide on how to prepare BOM, compute gross/net requirements and also includes a product structure diagram.

Solution Preview

Hello,

Please find attached a step by step guide on how to prepare BOM structure and compute gross requirements and net requirements. I have provided pictorial presentation along with the notes. Requirements computations are detailed for your reference.

Hope this helps you.

Solution:
Step 1: Draw product structure consisting of end product/finished good/highest level assembly and components or raw materials required. Start with highest level item and keep including components or next level items.
Note that highest level item or end product is coded at Level 0 and next level of items are ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Operations Management

This quiz tests a student's knowledge about Operations Management

View More Free Quizzes
Related BrainMass Solutions

  • Material requirements planning (MRP) short guide on computations

    This guide covers how to derive gross requirements, net requirements, offsetting for the lead time and BoM explosion.

  • Forecasting Case (Computer Assembly Manufacturer)

    Then compute for the net requirements. If the gross requirement is ZERO, then this is also ZERO. If not, then compare the gross requirement to the available inventory of last period. IF inventory is greater, then net requirements are ZERO.

  • Operations management

    Develop an MRP planning schedule showing gross and net requirements and order release and receipt dates. Hello Please see the attachement for 1. BOM structure 2. MRP planning with working notes for conceptual understanding.

  • Resource Planning

    Consider the MPS, BOM, and inventory data shown below (15 pts). Master Production Schedule: the following table shows the MPS start quantities.

  • Multi step income statement

    90704 Preparing a multi step income statement for a company. Clarification in computing the company's net sales, gross profit, and net income for the year ended june 30th 2000.

  • Computing Bad Debts and Preparing Journal Entries

    189499 Computing Bad Debts and Preparing Journal Entries The trial balance before adjustment of Reba McIntyre Inc. shows the following balances. Dr. Cr.

  • MPS problem

    It includes drawing a BOM, preparing a Master Production Schedule and MRP for a chair.

  • Accounting: Gross Profit And Journal Entries

    545235 The solution gives detailed steps on computing the gross profit for a specifc question and then preparing a journey entry. All formula and calculations are shown and explained.

  • Preparing a Multistep Income statement with Sales Discounts

    PA6-3 Preparing a Multistep Income statement with Sales Discounts and Sales Returns and Allowances and computing the Gross Profit Percentage. Big corporation is a local grocery store organized seven years ago as a corporation.

View More Related Solutions