A company manufactures a unique type of component (STC) used in injection moldin

Question

A company manufactures a unique type of component (STC) used in injection molding of medium-sized medical devices. By the start of week 6, a hundred STC must be ready to deliver. Each STC requires two sub-component A and four sub-component B. The lead time of STC is one week, and there are ten units on-hand. Sub-component A has a lead time of two weeks, and there is in-hand thirty units. Last, there are fifty units of Sub-component B, which has a lead time of one week. If at the beginning of week 6, one hundred STC is required, in what week should an order for sub-component B and sub-component A be released?

Explanation / Answer

Answer:

By the start of week 6, a hundred STC must be ready to deliver.

The lead time of STC is one week, and there are ten units on-hand.

Hence number units of STC need to be produced = 100 -10 = 90 units

Subcomponent A and B are required by start of week 5.

Subcomponent A:

Each STC requires two sub-component A and four sub-component B.

Hence quantity of Sub-component A required by start of week 5 = 90 * 2= 180 units

Sub-component A has a lead time of two weeks, and in-hand quantity is thirty units.

Hence number of subcomponent A required to be ordered = 180 units -30 units = 150 units.

Since Sub-component A has a lead time of two weeks, the order for the same has to be placed by start of week 3.

Subcomponent B:

There are fifty units of Sub-component B, which has a lead time of one week

Quantity of subcomponent B required by start of week 5 = 90 * 4= 360 units

Number of subcomponent B required to be ordered = 360 units -50 units = 310 units.

As  Sub-component B, has a lead time of one week, the order for Sub-component B, has to be placed by start of week 4.

The order for sub-component B has to be released by start of week 4 and the order for sub-component A has to be released by start of week 3.

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