Question

The following table lists the components needed to assemble an end item, lead times (in weeks), and quantities on hand.

Item lead time Amount on Hand Direct Components
End 3 0 L(2), C(1), K(3)
L 3 12 B(2), J(3)
C 4 15 G(2), B(2)
K 4 21 H(4), B(2)
B 3 32
J 4 27
G 4 5
H 3 0
a. If 43 units of the end item are to be assembled, how many additional units of B are needed? (Hint: You don’t need to develop an MRP plan.)

An order for the end item is scheduled to be shipped at the start of week 17. What is the latest week that the order can be started and still be ready to
ship on time? (Hint: You don’t need to develop an MRP plan.)

Answer 1

Item	LT	OH	Components
End	3	0	L(2), C(1), K(3)
L	3	12	B(2), J(3)
C	4	15	G(2), B(2)
K	4	21	H(4), B(2)
B	3	32
J	4	27
G	4	5
H	3	0

(a)

43 units of End item require 86 L, 46 C, ad 129 K on a gross basis.

Net requirement of L = 86 - 12 = 74
Net requirement of C = 46 - 15 = 31
Net requirement of K = 129 - 21 = 108

Gross requirement of B = 74 x 2 + 31 x 2 + 108 x 2 = 426

Net requirement of B = 426 - 32 = 394

(b)

So, the order must be started latest by week 6 beginning in order to finish the end item by week 17 beginning.