The following table lists the components needed to assemble an end item, lead ti
ID: 425654 • Letter: T
Question
The following table lists the components needed to assemble an end item, lead times, and quantities on hand.
a. 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.)
Additional units
b. An order for the end item is scheduled to be shipped at the start of week 13. 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 latest week
Explanation / Answer
Answer to question a :
If 23 units of end item are required, number of item B required also will be 46 units
But number of item B on hand = 9 units
Therefore, net requirement of item B = 46 – 9 = 37 units
Since 2 units of E are required for each unit of B ,
Number of units of B required = 37 x 2 = 74 units
If 23 units of end item are required , number of item C required also will be 23
However, number of C units on hand = 10
Therefore, net number of C units required = 23 – 10 = 13 units
Since 2 units of E are required for each unit of C,
Number of units of E required = 13 x 2 = 26 units
If 23 units of end item are required , number of item D required will be 23 x 3 = 69
Number of D units on hand = 24
Therefore , net number of D units required = 69 – 24 = 45
Since 2 units of E are required for each unit of D , total number of E required = 2 x 45 = 90
Therefore.
Gross requirement for item E = 74 + 26 + 90 = 190
Number of item E on hand = 10
Therefore , additional units of E required = 190 – 10 = 180
ANSWER TO QUESTION b :
If the end item needs to be shipped at start of week 13, it must be ready by end of week 12
Cumulative lead time of : End item – item B – item E = 3 + 1 + 1 = 5 weeks
Cumulative lead time : End item – item B – item F = 3 + 1 + 3 = 7 weeks
Cumulative lead time : End item – C – G = 3 + 3 + 1 = 7 weeks
Cumulative lead time : End item – C – E = 3 + 3 + 1 = 7 weeks
Cumulative lead time : End item – D – H = 3 + 3 + 3 = 9 weeks
Cumulative lead time : End item – D – E = 3 + 3 + 1 = 7 weeks
The chain with longest lead time of 9 weeks is End item – D – H
Therefore , if end item needs to be made ready by end of week 12 , item E must start getting processed latest by week 12 – 9 = week 3
Therefore, latest week the order must be started is week 3 and still be ready to ship on time
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