The demand for a machine part S is 100 units. Each unit of S requires 1 unit of

Question

The demand for a machine part S is 100 units. Each unit of S requires 1 unit of T and 2 units of U. Each unit of
T requires 1 unit of V, 2 units of W, and 1 unit of X. Finally, each unit of U requires 2 units of Y and 3 units of Z.
One firm manufactures all items. It takes 2 weeks to make S, 1 week to make T, 2 weeks to make U, 2 weeks to
make V, 3 weeks to make W, 1 week to make X, 2 weeks to make Y, and 1 week to make Z.
a) Construct a product structure. Identify amount of each component needed for one unit of final product
S
b) How many units do we need for each component (T, U, V, W, X, Y, and Z) to make 100 units of S?
c) How many weeks does the complete production process last?

Explanation / Answer

a)

Each unit of S requires 1 unit of T and 2 units of U

Each unit of T requires 1 unit of V, 2 units of W, and 1 unit of X.

each unit of U requires 2 units of Y and 3 units of Z

the table given below shows the number of units required for each unit of S. Since 2 units of U is required units of Y and Z required is 2*2 and 2*3 respectively.

b)

for 100 units of S: we multiply 100 to each part required for production of 1 unit of S.

c)

Assuming as many units required can be made in the number of weeks given for each part:

2 weeks to make S, 1 week to make T, 2 weeks to make U, 2 weeks to make V, 3 weeks to make W, 1 week to make X, 2 weeks to make Y, and 1 week to make Z.

Adding all the weeks in sequence of requirement:

for making S we need T and U:

For T: V,W,X, 2 weeks to make V, 3 weeks to make W, 1 week to make X

hence 6 weeks to make T's components

For U: Y,Z 2 weeks to make Y, and 1 week to make Z.

Hence, 3 weeks to make U's components

1 week to make T, 2 weeks to make U

Hence total 6+3+1+2 = 12 weeks to make all components of S

Another 2 weeks to make S = 14 weeks for total production.

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