Question

Assume that Product Z is made up of four units of A and two units of...

Assume that Product Z is made up of four units of A and two units of C and two units of D. A is made of three units of D. The total demand for Z is 2000 units

Additional information is the following:

                                   

Item

Z

A

C

D

On hand

750

500

460

2,000

Safety stock

0

120

140

200

Allocated

0

80

160

200

Scheduled Receipts

--

500 in Week 1

1,500 in Week 1

--

Provide the additional number of all items, including Z, that are required to meet the total demand shown for Product Z. Ignore the timing of these requirements.

Homework Answers

Answer #1
Total demand 2000 units of Z
Raw material reqquirement for Z Z = 4A+2C+2D
Raw material reqquirement for A A = 3D
Item Z A C D
On hand 750 500 460 2000
Safety stock 0 120 140 200
Allocated 0 80 160 200
Scheduled receipts NA 500 in week 1 1500 in week 1 NA
Reuirement for Z 2000 8000 4000 4000
Reuirement for A 0 0 0 24000
Total requirement 2000 8000 4000 28000
Already available and ordered stock 750 1200 2260 2400
Additional number of items required 1250 6800 1740 25600
Note: It is assumed that the allocated stock is other than the items in safety, on hand and scheduled receipts
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