One unit of A is made of two units of B and one unit of C. B is made of three un
ID: 452917 • Letter: O
Question
One unit of A is made of two units of B and one unit of C. B is made of three units of D and one unit of F. C is composed of three units of B, one unit of D, and four units of E. D is made of one unit of E. Item C has a lead time of one week; Items A, B, E, and F have two-week lead times; and Item D has a lead time of three weeks. Lot-for-lot lot sizing is used for Items C, E, and F; lots of size 25, 50, and 185 are used for Items A, B, and D, respectively. Items A, B, D, and E have on-hand (beginning) inventories of 5, 10, 140, and 120, respectively; all other items have zero beginning inventories. We are scheduled to receive 10 units of A in Week 3, 20 units of B in Week 7, 50 units of F in Week 5, and 65 units of E in Week 2; there are no other scheduled receipts.
If 20 units of A are required in Week 10, use the low-level-coded bill of materials (product structure tree) to find the necessary planned order releases for all components. (Leave no cells blank - be certain to enter "0" wherever required.)
One unit of A is made of two units of B and one unit of C. B is made of three units of D and one unit of F. C is composed of three units of B, one unit of D, and four units of E. D is made of one unit of E. Item C has a lead time of one week; Items A, B, E, and F have two-week lead times; and Item D has a lead time of three weeks. Lot-for-lot lot sizing is used for Items C, E, and F; lots of size 25, 50, and 185 are used for Items A, B, and D, respectively. Items A, B, D, and E have on-hand (beginning) inventories of 5, 10, 140, and 120, respectively; all other items have zero beginning inventories. We are scheduled to receive 10 units of A in Week 3, 20 units of B in Week 7, 50 units of F in Week 5, and 65 units of E in Week 2; there are no other scheduled receipts.
Explanation / Answer
Unit A - 2B + C Unit B - 3D + F Unit C - 3B + D + 4E Unit D - E Projected On Hand Calculation = Last Period Closing + Scheduled Receipt + Planned Receipt - Gross Requirement Net Requirement = Last Period Closing + Scheduled Receipt - Gross Requirement (If the above calculation results in negative amount, then such amount is taken as Net Requirement, else 0) Planned Receipt = If Net Requirement > 0, Planned Receipt as per Lot Size Planned Order Release = If Planned Receipt >0, Order as per Lead Time to be placed, Here 1 week before Item = A Q = 25 SS = 0 LT : 2 Period 0 1 2 3 4 5 6 7 8 9 10 Gross Requirement 0 0 0 0 0 0 0 0 0 20 Scheduled Receipts 0 0 10 0 0 0 0 0 0 0 Projected On Hand 5 5 5 15 15 15 15 15 15 15 20 Net Requirements 0 0 0 0 0 0 0 0 0 5 Planned Receipts 0 0 0 0 0 0 0 0 0 25 Planned Order Release 0 0 0 0 0 0 0 25 0 0 Unit C is required when order for A is released. Item = C L4L SS = 0 LT : 1 Period 0 1 2 3 4 5 6 7 8 9 10 Gross Requirement 0 0 0 0 0 0 0 25 0 0 Scheduled Receipts 0 0 0 0 0 0 0 0 0 0 Projected On Hand 0 0 0 0 0 0 0 0 0 0 0 Net Requirements 0 0 0 0 0 0 0 25 0 0 Planned Receipts 0 0 0 0 0 0 0 25 0 0 Planned Order Release 0 0 0 0 0 0 25 0 0 0 1 Unit of B is required when order for A is released. 3 Units of B are required when order for C is released. Item = B Q = 50 SS = 0 LT : 2 Period 0 1 2 3 4 5 6 7 8 9 10 Gross Requirement 0 0 0 0 0 0 75 50 0 0 Scheduled Receipts 0 0 0 0 0 0 20 0 0 0 Projected On Hand 50 50 50 50 50 50 50 0 0 0 0 Net Requirements 0 0 0 0 0 0 5 50 0 0 Planned Receipts 0 0 0 0 0 0 5 50 0 0 Planned Order Release 0 0 0 0 5 50 0 0 0 0 1 Unit of D is required when order for C is released. 3 Units of D are required when order for B is released. Item = D Q = 185 SS = 0 LT : 3 Period 0 1 2 3 4 5 6 7 8 9 10 Gross Requirement 0 0 0 0 15 150 25 0 0 0 Scheduled Receipts 0 0 0 0 0 0 20 0 0 0 Projected On Hand 140 140 140 140 140 125 160 155 155 155 155 Net Requirements 0 0 0 0 0 25 0 0 0 0 Planned Receipts 0 0 0 0 0 185 0 0 0 0 Planned Order Release 0 0 185 0 0 0 0 0 0 0 1 Unit of F is required when order for B is released. Item = F L4L SS = 0 LT : 2 Period 0 1 2 3 4 5 6 7 8 9 10 Gross Requirement 0 0 0 0 5 50 0 0 0 0 Scheduled Receipts 0 0 0 0 50 0 0 0 0 0 Projected On Hand 0 0 0 0 0 45 0 0 0 0 0 Net Requirements 0 0 0 0 0 5 0 0 0 0 Planned Receipts 0 0 0 0 0 5 0 0 0 0 Planned Order Release 0 0 0 5 0 0 0 0 0 0 1 Unit of E is required when order for D is released. 4 Units of E are required when order for C is released. Item = E L4L SS = 0 LT : 2 Period 0 1 2 3 4 5 6 7 8 9 10 Gross Requirement 0 0 185 0 0 0 100 0 0 0 Scheduled Receipts 0 65 0 0 0 0 0 0 0 0 Projected On Hand 120 120 185 0 0 0 0 0 0 0 0 Net Requirements 0 0 0 0 0 0 100 0 0 0 Planned Receipts 0 0 0 0 0 0 100 0 0 0 Planned Order Release 0 0 0 0 100 0 0 0 0 0
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