Question

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.

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