One unit of A is made of two units of B, three units of C, and two units of D. B
ID: 457992 • Letter: O
Question
One unit of A is made of two units of B, three units of C, and two units of D. B is composed of one unit of E and two units of F. C is made of two units of F and one unit of D. E is made of two units of D. Items A, C, D, and F have one-week lead times; B and E have lead times of two weeks. Lot-for-lot (L4L) lot sizing is used for Items A, B, C, and D; lots of size 50 and 220 are used for Items E and F, respectively. Item C has an on-hand (beginning) inventory of 20; D has an on-hand inventory of 50; all other items have zero beginning inventory. We are scheduled to receive 20 units of Item E in Week 2; there are no other scheduled receipts. Construct (a) A simple bill of materials and (b) A low-level-coded bills of materials (product structure tree). If 25 units of A are required in Week 8, use the low-level-coded bill of materials to find the necessary planned order releases for all components.
Explanation / Answer
Item: A
OH = 0
LT = 1
SS = 0
Q =L4L
1
2
3
4
5
6
7
8
Gross Req.
0
0
0
0
0
0
0
25
Scheduled receipts
0
0
0
0
0
0
0
0
Projected-on-hand
0
0
0
0
0
0
0
0
Net Requirement
0
0
0
0
0
0
0
25
Planned order Receipts
0
0
0
0
0
0
0
25
Planned order releases
0
0
0
0
0
0
25
0
For each A, 2 units of B are required in wk.7
Item: B
OH = 0
LT = 2
SS = 0
Q =L4L
1
2
3
4
5
6
7
8
Gross Req.
0
0
0
0
0
0
50
0
Scheduled receipts
0
0
0
0
0
0
0
0
Projected-on-hand
0
0
0
0
0
0
0
0
Net Requirement
0
0
0
0
0
0
50
0
Planned order Receipts
0
0
0
0
0
0
50
0
Planned order releases
0
0
0
0
50
0
0
0
For each A, 3 units of C are required in wk.7
Item = C
OH = 20
LT = 1
SS = 0
Q =L4L
1
2
3
4
5
6
7
8
Gross Req.
0
0
0
0
0
0
75
0
Scheduled receipts
0
0
0
0
0
0
0
0
Projected-on-hand
20
20
20
20
20
20
20
0
Net Requirement
0
0
0
0
0
0
55
0
Planned order Receipts
0
0
0
0
0
0
55
0
Planned order releases
0
0
0
0
0
55
0
0
For each B, 1 unit of E is required in wk.5
Item: E
OH = 0
LT = 2
SS = 0
Q =50
1
2
3
4
5
6
7
8
Gross Req.
0
0
0
0
50
0
0
0
Scheduled receipts
0
20
0
0
0
0
0
0
Projected-on-hand
0
0
20
20
20
20
20
20
Net Requirement
0
0
0
0
30
0
0
0
Planned order Receipts
0
0
0
0
50
0
0
0
Planned order releases
0
0
50
0
0
0
0
0
For each B, 2 units of F are required in wk.5 and for each C, 2 units of F are required in wk.6
Item: F
OH = 0
LT = 1
SS = 0
Q =220
1
2
3
4
5
6
7
8
Gross Req.
0
0
0
0
100
110
0
0
Scheduled receipts
0
0
0
0
0
0
0
0
Projected-on-hand
0
0
0
0
0
120
10
10
Net Requirement
0
0
0
0
100
0
0
0
Planned order Receipts
0
0
0
0
220
0
0
0
Planned order releases
0
0
0
220
0
0
0
0
For each A, 2 units of D are required in wk.7. For each C, 1 unit of D is required in wk.6 and for each E, 2 units of D are required in wk.3
Item: D
OH = 50
LT = 1
SS = 0
Q =L4L
1
2
3
4
5
6
7
8
Gross Req.
0
0
100
0
0
55
50
0
Scheduled receipts
0
0
0
0
0
0
0
0
Projected-on-hand
50
50
50
0
0
0
0
0
Net Requirement
0
0
50
0
0
55
50
0
Planned order Receipts
0
0
50
0
0
55
50
0
Planned order releases
0
50
0
0
55
50
0
0
Item: A
OH = 0
LT = 1
SS = 0
Q =L4L
1
2
3
4
5
6
7
8
Gross Req.
0
0
0
0
0
0
0
25
Scheduled receipts
0
0
0
0
0
0
0
0
Projected-on-hand
0
0
0
0
0
0
0
0
Net Requirement
0
0
0
0
0
0
0
25
Planned order Receipts
0
0
0
0
0
0
0
25
Planned order releases
0
0
0
0
0
0
25
0
For each A, 2 units of B are required in wk.7
Item: B
OH = 0
LT = 2
SS = 0
Q =L4L
1
2
3
4
5
6
7
8
Gross Req.
0
0
0
0
0
0
50
0
Scheduled receipts
0
0
0
0
0
0
0
0
Projected-on-hand
0
0
0
0
0
0
0
0
Net Requirement
0
0
0
0
0
0
50
0
Planned order Receipts
0
0
0
0
0
0
50
0
Planned order releases
0
0
0
0
50
0
0
0
For each A, 3 units of C are required in wk.7
Item = C
OH = 20
LT = 1
SS = 0
Q =L4L
1
2
3
4
5
6
7
8
Gross Req.
0
0
0
0
0
0
75
0
Scheduled receipts
0
0
0
0
0
0
0
0
Projected-on-hand
20
20
20
20
20
20
20
0
Net Requirement
0
0
0
0
0
0
55
0
Planned order Receipts
0
0
0
0
0
0
55
0
Planned order releases
0
0
0
0
0
55
0
0
For each B, 1 unit of E is required in wk.5
Item: E
OH = 0
LT = 2
SS = 0
Q =50
1
2
3
4
5
6
7
8
Gross Req.
0
0
0
0
50
0
0
0
Scheduled receipts
0
20
0
0
0
0
0
0
Projected-on-hand
0
0
20
20
20
20
20
20
Net Requirement
0
0
0
0
30
0
0
0
Planned order Receipts
0
0
0
0
50
0
0
0
Planned order releases
0
0
50
0
0
0
0
0
For each B, 2 units of F are required in wk.5 and for each C, 2 units of F are required in wk.6
Item: F
OH = 0
LT = 1
SS = 0
Q =220
1
2
3
4
5
6
7
8
Gross Req.
0
0
0
0
100
110
0
0
Scheduled receipts
0
0
0
0
0
0
0
0
Projected-on-hand
0
0
0
0
0
120
10
10
Net Requirement
0
0
0
0
100
0
0
0
Planned order Receipts
0
0
0
0
220
0
0
0
Planned order releases
0
0
0
220
0
0
0
0
For each A, 2 units of D are required in wk.7. For each C, 1 unit of D is required in wk.6 and for each E, 2 units of D are required in wk.3
Item: D
OH = 50
LT = 1
SS = 0
Q =L4L
1
2
3
4
5
6
7
8
Gross Req.
0
0
100
0
0
55
50
0
Scheduled receipts
0
0
0
0
0
0
0
0
Projected-on-hand
50
50
50
0
0
0
0
0
Net Requirement
0
0
50
0
0
55
50
0
Planned order Receipts
0
0
50
0
0
55
50
0
Planned order releases
0
50
0
0
55
50
0
0
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