solution

A new Chinese restaurant opened in Vancouver six months ago is not doing good business. The owner called a meeting of his staff and identified some of the problems that they are experiencing: Half of the advertised entrees on the menu are not available to customers when they tried to order Running out of dishes or left-over dishes is an everyday problem Chef Eric Lee has no idea how many ingredients are needed or to be ordered, and either they underestimate in which case the item falls off the menu or they over-estimate and the ingredient expires while sitting in freezer Furthermore, chef has no formula on how to calculate the ingredients especially when the same spice or ingredient can be used in multiple dishes Your job is to advise the Eric Lee on how he can use the bill-of-materials, lot sizing and MRP system to address these issues. Construct a hypothetical product tree bill of material (BOM) for one single dishes that you would like in this restaurant. Prepare a BOM file for that dish using your own recipe. Develop a simple MRP logic in a table that you will use as a demonstration to show the Chef how this approach can benefit him to know the quantity of ingredients and timing to order them. You can use fixed order sizes of 5 kgs (or 5 litres) and fixed lead times of 1 week for each ingredient as this is just a demonstration tool but not a real MRP.