The Plant is using the chase production option and the Assemble to Order (ATO) p

Question

The Plant is using the chase production option and the Assemble to Order (ATO) process design. The Bill of Material (BOM) is illustrated below;

Parent Item

Item A

Item B Item C

(3 to 1) Inventory = 48 (2 to 1) Inventory = 23

Item D Item E Item F Item G

(1 to1) No Inventory (1 to 1) No Inventory (1 to 1) No Inventory (1 to 1) Inventory = 10

Please Note;

A is parent Item. Item B and C is under A. Item D and E is Under B , and Item F and G is under C. ( It is like a family tree. Please help to solve this problem.

Thank you.

How many of Item B, C, D, E, F, and G are needed to make 173 of A item.

Parent Item

Item A

Item B Item C

(3 to 1) Inventory = 48 (2 to 1) Inventory = 23

Item D Item E Item F Item G

(1 to1) No Inventory (1 to 1) No Inventory (1 to 1) No Inventory (1 to 1) Inventory = 10

Explanation / Answer

Solution :

Item Quantity On-Hand Direct Components Net Requirement Gross Requirement A 0 Bx3, Cx2 173 173 B 48 Dx1, Ex1 519 471 C 23 Fx1, Gx1 346 323 D 0 -- 471 471 E 0 -- 471 471 F 0 -- 323 323 G 10 -- 323 313

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