One unit of A is made of two units of B, three units of C, and two units of D. B
ID: 463991 • 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 60 and 220 are used for Items E and F, respectively. Item C has an on-hand (beginning) inventory of 25; 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. 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. (Leave no cells blank - be certain to enter "0" wherever required.) Period 1 2 3 4 5 6 7 8 Item A OH = 0 LT = 1 SS = 0 Q = L4L Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipts Planned order releases Item B OH = 0 LT = 2 SS = 0 Q = L4L Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipts Planned order releases Item C OH = 25 LT = 1 SS = 0 Q = L4L Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipts Planned order releases Item E OH = 0 LT = 2 SS = 0 Q = 60 Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipts Planned order releases Item F OH = 0 LT = 1 SS = 0 Q = 220 Gross requirements Scheduled receipts Projected on hand
Explanation / Answer
For every 1 unit of A, we require
2 units of B
3 units of C
9 units of D
2 units of E
10 units of F
Hence for 25 units of A we will require
50 units of B
75 units of C
225 units of D
50 units of E
250 units of F
As we require 25 units of A in week 8 and it has a lead time of one week, we need required units of B, C and D readily available by week 7. As required units of B are needed by week 7 and it has a lead time of two weeks we need the required units of E and F by week 5. And for this we require D to be available in week 3 for producing E which has a lead time of two weeks.
In Week 2 70 units of D should be ordered which will make the inventory for D to reach 120 in week 3 as E is produced in lot size of 60. As we have 20 units of E in week 2 already we only require an additional 30 by week 5, that will be made available by the 60 units of D on week 3 and a lead time of two weeks. 220 units of F should be ordered in week 4 for B to be processed in week 5 and made available completely however, only 100 units would required for B.
We require units of C available by week 7. Hence we need the required units of components F and D available in week 6 as C has a lead time of one week. Another 220 units should be ordered of F in week 5 as 150 units are required for C and we have on hand only 120 units. And another 75 units of D should also be ordered in week 5 to be made available in week 6 for processing of C.
Lastly we need to order the remaining required units of D in week 6 i.e., 50 units for producing A.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.