If 23 units of the end item are to be assembled, how many additional units of E

Question

If 23 units of the end item are to be assembled, how many additional units of E are needed? (Hint: You don't need to develop an MRP plan to determine this.)

An order for the end item is scheduled to be shipped at the start of week 15. 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 for this part either.)

The following table lists the components needed to assemble an end item, lead times, and quantities on hand. End Item D (3) B (2) E (2) F(3) G (2) E (2) H (4) E (21

Explanation / Answer

a)

Following formula are used to calculate the net requirement

Net requirement = Gross requirement - Amount on hand

Gross requirement = Net requirement of parent item * usage factor

Net requirement of End item = Gross requirement - Amount on hand = 23 - 0 = 23

Gross requirement of B = Net requirement of End item * Usage = 23*2 = 46

Net requirement of B = Gross requirement - Amount on hand = 46 - 10 = 36

Net requirement of C = Net requirement of End item * Usage - Amount on hand = 23*1 - 10 = 13

Net requirement of D = Net requirement of End item * Usage  - Amount on hand = 23*3 - 25 = 44

Net requirement of E = Net requirement of B*Usage factor + Net requirement of C*Usage factor + Net requirement of D*Usage factor - Amount on hand = 36*2+13*2+44*2-12 = 174

Additional units = 174

b)

The longest lead time is required by End item + D + H = 1+3+2 = 6 weeks

Therefore, for order to be shipped at the start of week 15, it has to be started 6 weeks in advance, i.e. at the start of week 9

The latest week = 9

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