The following table lists the components needed to assemble an end item, lead ti
ID: 343356 • Letter: T
Question
The following table lists the components needed to assemble an end item, lead times (in weeks), and quantities on hand Amount on ItemT Direct Components (2), C(1), K(3) B (2), J (3) G (2), B (2) H(4), B (2) Hand End 16 21 29 30 o. If 43 units of the end item are to be assembled, how many additional units of B are needed? (int You don't need to develop an MRP plan) Additional units b. An order for the end item is scheduled to be shipped at the start of week 11 What is the latest week that the order can be started and still be ready to ship on time? (Hint You don't need to develop an MRP plan) The latest week ]Explanation / Answer
One unit of end item requires 2 unit of L and each unit of L requires 2 units of B, making it 2 x 2 = 4 units of B for 1 unit of end item
One unit of end item requires 1 unit of C and each unit of C requires 2 units of B , making 1 x 2 = 2 units of B for 1 unit of end item
One unit of end item requires 3 units of K and each unit of K requires 2 units of B , making 3 x 2 = 6 units of B for 1 unit of end item
Thus total units of B required for 1 unit of end item = 4 + 2 + 6 = 12 units
Gross requirement of B for 43 units of end item = 43 x 12 = 516 units
However number of B units on hand = 29
Therefore , net requirement of B units = 516 – 29 = 487
ADDITIONAL UNITS = 487 UNITS
The cumulative lead time for various options consisting of “End item – Tier 1 item – Tier 2 item” are as follows :
End item – L – B = 2 + 2 + 2= 6 weeks
End item – L – J = 2 + 2 + 3 = 7 weeks
End item – C – J =2 + 3 + 3 = 8 weeks
End item – C – B = 2 + 3 + 2 = 7 weeks
End item – K – H = 2 + 3+ 2 = 7 weeks
End item – K – B = 2 + 3+ 2 = 7 weeks
Out of above , End item – C- J has the longest lead time of 8 weeks
Therefore latest week the order should be started so that end item can be shipped by week 11
= week 11 – week 8
= Week 3
THE LATEST WEEK = WEEK 3
ADDITIONAL UNITS = 487 UNITS
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