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Only exercise 2 Material Requirement Planning just this exercise 

BCO214-PRODUCTION MANAGEMENT Final Task brief & rubrics


Students are required to develop an individual report addressing the specific tasks set out in the guideline below.

Task briefing:

Exercise 1: Economic Order Quantity. (35 points)

One of the Toyota plants must decide how many of a particular type to order for manufacturing automobiles.

The company plans to produce 300,000 cars in the next year. All cars planned for production use the same headlights (2 units per car); therefore, demand

for the headlights for the next year is known to be 600,000 units. The purchasing agent wants to know how many headlights to buy at one time. Historically,

headlights have been received half a day (lead time) after they were ordered. It costs € 50 to order lights, and the holding-cost fraction used by the auto

company is 22 % per year. The headlights cost € 25 each.

1) Compute the Economic Order Quantity.
2) What is the number of orders per year?
3) What is the frequency of orders? Assume the company works 365 days a year.
4) What is the reorder point?
5) The company works with a Safety Stock of 0.75 days. What is the level of this stock?
6) What is the Average Stock?
7) What is the total Holding Cost?
8) What is the total Ordering Cost?
9) What is the total Cost of Stock Management?
10) Draw the evolution of stock in time (the stock chart).

Material Requirement Planning (MRP). (35 points)

Exercise 3: Understand quality management and efficiency control and how to measure. (30 points)

3.1) “Quality begins with the design of a product in accordance with the customer specification further it involved the established” Discuss why and

give examples.

3.2) Why is necessary Inspection in production?

100% inspection or sampling inspection. When do we use each and what are the reasons for it?

3.3) Why do we define tools for measuring and controlling quality. Give the list of basic tools in Quality Management, explain, and give examples.

3.4) What are the most usual “wastes” in a production system? How Lean Management can reduce or eliminate these wastes and improve the efficiency

in a manufacturing process?

Students are required to use the Harvard Referencing System. The report needs to be uploaded onto Turnitin on Moodle. The assignment hand-in will be created
by the course tutor.


• Word document.

• Wordcount: 2500 words.

• Cover, Table of Contents, References and Appendix are excluded of the total wordcount.

• Font: Arial 12,5 pts.

• Text alignment: Justified.

• The in-text References and the Bibliography have to be in Harvard’s citation style.


• Week 12: Via Moodle (Turnitin).

• Deadline: 8th January 2023 at 23:59 CEST.

Weight: This task is a 60% of your total grade for this subject.

It assesses the following learning outcomes.

On successful completion of this course, students will be able to:

1. Understand the production management within operations management.

2. Evaluate how to elaborate a master production schedule (MRS) and material requirement planning (MRP).

3. Understand quality control components and measures.

4. Understand production in the global setting.


Exceptional 90-100 Good 80-89 Fair 70-79 Marginal fail 60-69

Knowledge &


Student demonstrates
excellent understanding of
key concepts and uses
vocabulary in an entirely
appropriate manner.

Student demonstrates
good understanding of the
task and mentions some
relevant concepts and
demonstrates use of the
relevant vocabulary.

Student understands the
task and provides minimum
theory and/or some use of

Student understands the task
and attempts to answer the
question but does not
mention key concepts or uses
minimum amount of relevant

Application (30%) Student applies fully
relevant knowledge from
the topics delivered in

Student applies mostly
relevant knowledge from
the topics delivered in

Student applies some
relevant knowledge from
the topics delivered in
class. Misunderstanding
may be evident.

Student applies little relevant
knowledge from the topics
delivered in class.
Misunderstands are evident.

Critical Thinking

Student critically assesses
in excellent ways, drawing
outstanding conclusions
from relevant authors.

Student critically assesses
in good ways, drawing
conclusions from relevant
authors and references.

Student provides some
insights but stays on the
surface of the topic.
References may not be

Student makes little or none
critical thinking insights, does
not quote appropriate
authors, and does not
provide valid sources.


Student communicates
their ideas extremely
clearly and concisely,
respecting word count,
grammar and spellcheck

Student communicates
their ideas clearly and
concisely, respecting word
count, grammar and

Student communicates
their ideas with some
clarity and concision. It
may be slightly over or
under the wordcount limit.
Some misspelling errors
may be evident.

Student communicates their
ideas in a somewhat unclear
and unconcise way. Does not
reach or does exceed
wordcount excessively and
misspelling errors are

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