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Product X is made of two units of Y and three of Z. Y is made of one unit of A a

ID: 468024 • Letter: P

Question

Product X is made of two units of Y and three of Z. Y is made of one unit of A and two units of B. Z is made of two units of A and four units of C.

Lead time for X is one week; Y, two weeks; Z, three weeks; A, two weeks; B, one week; and C, three weeks. Current on-hand inventories of 17 X, 35 Y, 28 Z, 45 A, 90 B, and 890 C

If 95 units of X are needed in week 10, develop a planning schedule showing when each item should be ordered and in what quantity.

Product X is made of two units of Y and three of Z. Y is made of one unit of A and two units of B. Z is made of two units of A and four units of C.

Lead time for X is one week; Y, two weeks; Z, three weeks; A, two weeks; B, one week; and C, three weeks. Current on-hand inventories of 17 X, 35 Y, 28 Z, 45 A, 90 B, and 890 C

Explanation / Answer

Consider Lot-for-lot lot size technique for all the items.

Item: X

LT = 1 WK

Lot Size: L4L

SS = 0

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

95

Scheduled receipts

0

Projected-on-hand

17

17

17

17

17

17

17

17

17

17

17

Net Requirement

78

Planned order Receipts

78

Planned order releases

78

Item: Y

LT = 2 WK

Lot Size: L4L

SS = 0

(2 units for X)

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

156

Scheduled receipts

0

Projected-on-hand

35

35

35

35

35

35

35

35

35

35

0

Net Requirement

121

Planned order Receipts

121

Planned order releases

121

  

Item: Z

LT = 3 WK

Lot Size: L4L

SS = 0

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

234

Scheduled receipts

0

Projected-on-hand

28

28

28

28

28

28

28

28

28

28

0

Net Requirement

206

Planned order Receipts

206

Planned order releases

206

Item: A

0

1

2

3

4

5

6

7

8

9

10

1 unit Req. for Y

0

121

2 unit req, for Z

412

0

Total Gross Req.

412

121

Item: A

LT = 2 WK

Lot Size: L4L

SS = 0

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

412

121

0

0

0

Scheduled receipts

0

0

Projected-on-hand

45

45

45

45

45

45

45

0

Net Requirement

Planned order Receipts

367

121

Planned order releases

367

121

Item: B

LT = 1 WK

Lot Size: L4L

SS = 0

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

242

Scheduled receipts

0

Projected-on-hand

90

90

90

90

90

90

90

90

Net Requirement

152

Planned order Receipts

152

Planned order releases

152

Item: C

LT = 3 WK

Lot Size: L4L

SS = 0

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

824

Scheduled receipts

0

Projected-on-hand

890

890

890

890

890

890

890

66

66

66

66

Net Requirement

0

Planned order Receipts

0

Planned order releases

0

Item: X

LT = 1 WK

Lot Size: L4L

SS = 0

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

95

Scheduled receipts

0

Projected-on-hand

17

17

17

17

17

17

17

17

17

17

17

Net Requirement

78

Planned order Receipts

78

Planned order releases

78

Item: Y

LT = 2 WK

Lot Size: L4L

SS = 0

(2 units for X)

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

156

Scheduled receipts

0

Projected-on-hand

35

35

35

35

35

35

35

35

35

35

0

Net Requirement

121

Planned order Receipts

121

Planned order releases

121

  

Item: Z

LT = 3 WK

Lot Size: L4L

SS = 0

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

234

Scheduled receipts

0

Projected-on-hand

28

28

28

28

28

28

28

28

28

28

0

Net Requirement

206

Planned order Receipts

206

Planned order releases

206

Item: A

0

1

2

3

4

5

6

7

8

9

10

1 unit Req. for Y

0

121

2 unit req, for Z

412

0

Total Gross Req.

412

121

Item: A

LT = 2 WK

Lot Size: L4L

SS = 0

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

412

121

0

0

0

Scheduled receipts

0

0

Projected-on-hand

45

45

45

45

45

45

45

0

Net Requirement

Planned order Receipts

367

121

Planned order releases

367

121

Item: B

LT = 1 WK

Lot Size: L4L

SS = 0

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

242

Scheduled receipts

0

Projected-on-hand

90

90

90

90

90

90

90

90

Net Requirement

152

Planned order Receipts

152

Planned order releases

152

Item: C

LT = 3 WK

Lot Size: L4L

SS = 0

0

1

2

3

4

5

6

7

8

9

10

Gross Req.

824

Scheduled receipts

0

Projected-on-hand

890

890

890

890

890

890

890

66

66

66

66

Net Requirement

0

Planned order Receipts

0

Planned order releases

0

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