A particular end item is made of four A36 subassemblies, 2 B11 subassemblies and

Question

A particular end item is made of four A36 subassemblies, 2 B11 subassemblies and 1 C35 subassembly. Each A36 is made from one B22 and 2 B19s. Each B22 requires one C7 and one D19. The letter in the subassembly name denotes the department in which it is produced; D parts are purchased from outside the company. All lead times are one week. Each A36 requires 0.5hrs of processing time, each B22 requires 2.5 hrs, and all others fabricated parts require one hour of processing time. a) Draw the BOM tree for this end item, clearly indicating the number of each item required to produce one unit of the item at the next higher level. (10 points) b) Suppose the MPS calls for 100 units of this end item to be produced in period 5. Compute the capacity requirements imposed on each department using the capacity requirements planning approach

Explanation / Answer

B) The capacity requirement imposed on eack department to produce 100 Items in 5 days would be as below,

Departemtn A: 4 Nos of A36 is required in the end item

Thus, for 100 Items 400 A36 would be required.

Processign time for 400 = 400*0.5 = 200Hrs

Department B: 2 Nos of B19 and 1 Nos of B22 is required in the end item,

Thus for 100 Items 200 B19 and 100 B22 would be required.

Processign time for B19 = 200*1 = 200Hrs

Processign time for B22 = 100*2.5 = 250Hrs

Total Processing time of Departemtn B = 200+250 = 450 Hrs

Department C: 1 Nos of C7 required in the end item,

Processign time for C7 = 100*1.0 = 100Hrs

Department D: 1 Nos of D19 required in the end item,

Processign time for D19 = 100 (Outsourced)

Thus Capicity imposed on each department would be as below,

Department A = 200 / 5 = 40 Hrs,

Nos of bags to be produced in 40 hrs = 40/0.5 = 80 Bags.

Thus 80 Bags per day is the capicity imposed on departmen A.

Department B = B19 = 200/5 = 40 Hrs, B22=250/5 = 50 Hrs

Nos of bags to be produced in 40 hrs = 40/1.0 = 40 Bags. ----B19

Nos of bags to be produced in 50 hrs = 50/2.5 = 20 Bags. ----B22

Thus 60 Bags per day is the capicity imposed on departmen B.

Department C= 100 / 5 = 20 Hrs,

Nos of bags to be produced in 20 hrs = 20/1.0 = 20 Bags.

Thus 20 Bags per day is the capicity imposed on departmen C.

Department D = 100 (Outsources)

Thus 20 Bags per day is the capicity imposed on departmen A.

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