Illustrious Corp Case Study

In: Business and Management

Submitted By imajenie
Words 645
Pages 3
Case: Illustrious Corporation

Supply Chain Management

January 3, 2013

I. Statement of the Problem/Key Strategic Issue
Illustrious Corporation is a small assembly shop for the X500 product. Nancy Barfield, the production planner has been preparing the operating plan for the next 10 weeks. The first component for X500 is the H590 which they purchase from other local company but are then returned to the supplier due to the number of defective units hence, the production of P712 will be delayed since P712 is just a tapped H590. The production of other components is dependent to H590 hence the assembly of X500 will also be behind schedule.
The problem is that in the current MRP, the purchasing or materials procurement plans are not synchronized with the master production schedule. II. Statement of the Objectives * To determine the dependent and independent demands included in the assembly of X500 * To work through a basic materials requirement plan (MRP) * To understand the managerial inputs for and implications of building and using an MRP system

III. Relevant Case Facts/Findings
Illustrious Corporation: Company Background * Assembly shop for the X500 product * A single X500 requires 7 components in 4 assembly levels * Independent demands: * H590 – bought from other local company * G418 – bought from other supplier * F416 – bought in kit form * Dependent demands: * P712 – tapped H590 * Q307 – formed by attaching P712 & G418 * L600 – formed by attaching H590 & G418 * L477 – formed by attaching F416 & Q307 * X500 – formed by combining L477 & L600

IV. Alternatives No. | Alternative | Pros | Consequences | Risk Assessment | Benefits | 1 | Get other suppliers for their dependent demands | Open to more suppliers | Finding a new…...

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